Andrea Kris Is Opening a Small Flower Shop That Will

Multiple Choice

Andrea Kris is opening a small flower shop that will focus primarily on delivery, but will provide a small showroom for walk-in customers.A local florist is retiring and selling her small flower shop to Andrea for $162,500.The shop has a remaining life of 20 years.Andrea expects to have revenues of $81,250 per year and pay approximately 60% of revenues in operating costs.What is the accounting rate of return for Andrea's flower shop?

A) 15%
B) 20%
C) 45%
D) 25%