A Plant Asset of $270,000 Is Expected to Generate $180,000

Multiple Choice

A plant asset of $270,000 is expected to generate $180,000 in operating cash savings (excluding depreciation expense) annually for three years.Assume straight-line depreciation is used.The useful life is three years.The asset has no expected residual value.Ignore income taxes.The accounting rate of return based on the average investment is ________.

A) 11.11%
B) 33.33%
C) 44.44%
D) 66.67%