(Ignore Income Taxes in This Problem

Multiple Choice

(Ignore income taxes in this problem.) Chee Corporation has gathered the following data on a proposed investment project:

The company uses straight-line depreciation. Assume cash flows occur uniformly throughout a year except for the initial investment.
-The simple rate of return on the investment is closest to:

A) 12.5%
B) 10.0%
C) 20.8%
D) 8.3%