The Green Fiddle is considering a project that will produce sales of $87,000 a year for the next 4 years.

The Green Fiddle is considering a project that will produce sales of $87,000 a year for the next 4 years. The profit margin is estimated at 6 percent. The project will cost $90,000 and will be depreciated straight-line to a book value of zero over the life of the project. The firm has a required accounting return of 11 percent. This project should be _____ because the AAR is _____ percent.    A.  rejected; 10.03 B.  rejected; 10.25 C.  rejected; 11.60 D.  accepted; 10.25 E.  accepted; 11.60

83.

A project has an initial cost of $32,000 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 $1,200, $2,300, and $1,800 a year for the next 3 years, respectively. What is the average accounting return?    A.  8.72 percent B.  11.04 percent C.  11.26 percent D.  14.69 percent E.  15.14 percent

84.

A project produces annual net income of $46,200, $51,800, and $62,900 over its 3-year life, respectively. The initial cost of the project is $675,000. This cost is depreciated straight-line to a zero book value over three years. What is the average accounting rate of return if the required discount rate is 14.5 percent?    A.  15.89 percent B.  16.67 percent C.  18.98 percent D.  20.25 percent E.  23.84 percent