Colin is analyzing a three-year project that has an initial cost of $204,000. This cost will be depreciated straight-line to zero over three years. The projected annual net income for the three years is $13,700, $14,900, and $18,200. If the discount rate is 12 percent, what's the average accounting rate of return?
A. 11.31 percent
B. 16.94 percent
C. 15.66 percent
D. 15.29 percent
The average accounting rate... View the full answer