A project has an initial cost of $54,000 and a four-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 $2,000, $3,900, $4,500, and $4,500 a year for the next four years, respectively. What is the average accounting return?
7.25 percent
27.59 percent
6.90 percent
52.59 percent
13.80 percent