Suppose a firm invests $600 in a project. The initial cost is depreciated straight-line to zero over 3 years. Net income from the project is $100, $125, and $140 in each of the three years of the project's life. What is the average accounting return?
A) 18.25%
B) 20.28%
C) 35.49%
D) 40.56%
E) 60.83%

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The Answer of Suppose a firm invests $600 in a project. The initial cost is depreciated straight-line to zero over 3 years. Net income from the project is $100, $125, and $140 in each of the three years of the project's life. What is the average accounting return?
A) 18.25%
B) 20.28%
C) 35.49%
D) 40.56%
E) 60.83%

Suppose a Firm Invests $600 in a Project