Assume a Project Has an Initial Cost of $48,000 and Will

Multiple Choice

Assume a project has an initial cost of $48,000 and will produce net income for 5 years.The project will use straight-line depreciation over the life of the project.The AAR of this project can be computed as

A) (Sum of all net income / 5) / ($48,000 / 2)
B) (Sum of all net income / 2) / ($48,000 / 2)
C) ($48,000 / 5) / (Sum of all net income / 5)
D) ($48,000 / 2) / (Sum of all net income / 2)
E) (Sum of all net income / 5) / $48,000