A Project Has an Initial Cost of $16,780 and a 3-Year

Multiple Choice

A project has an initial cost of $16,780 and a 3-year life.The company uses straight-line depreciation to a book value of zero over the life of the project.The projected net income from the project is $3,320,$3,080,and $1,700 for Years 1 to 3,respectively.What is the average accounting return?

A) 28.56%
B) 34.13%
C) 14.28%
D) 27.11%
E) 32.18%