A Project Has an Accounting Rate of Return of 20

Multiple Choice

A project has an accounting rate of return of 20%. The assets used in the project have an original cost of £500,000 and an expected resale value of £50,000 when the project comes to an end in 5 years' time. What are the total cash inflows expected from this project?

A) £275,000
B) £675,000
C) £700,000
D) £725,000