A Project Produces Annual Net Income of $9,500,$12,500,and $15,500 Over

Multiple Choice

A project produces annual net income of $9,500,$12,500,and $15,500 over its 3-year life.The initial cost of the project is $210,000.This cost is depreciated straightline to a zero book value over three years.What is the average accounting rate of return if the required discount rate is 12.25 percent?

A) 14.80%
B) 14.32%
C) 23.49%
D) 11.90%
E) 17.62%