The Green Fiddle is considering a project that will produce sales of $87,000 a year for the next 4 years.The profit margin is estimated at 6 percent.The project will cost $90,000 and will be depreciated straight-line to a book value of zero over the life of the project.The firm has a required accounting return of 11 percent.This project should be _____ because the AAR is _____ percent.
A)rejected; 10.03
B)rejected; 10.25
C)rejected; 11.60
D)accepted; 10.25
E)accepted; 11.60

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The Answer of The Green Fiddle is considering a project that will produce sales of $87,000 a year for the next 4 years.The profit margin is estimated at 6 percent.The project will cost $90,000 and will be depreciated straight-line to a book value of zero over the life of the project.The firm has a required accounting return of 11 percent.This project should be _____ because the AAR is _____ percent.
A)rejected; 10.03
B)rejected; 10.25
C)rejected; 11.60
D)accepted; 10.25
E)accepted; 11.60

The Green Fiddle Is Considering a Project That Will Produce