Problem:
A project has an initial cost of $37,000 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 $1,100, $1,200, $1,700, and $1,800 a year for the next four years, respectively.
Required:
Question: What is the average accounting return?
Note: Please show how you came up with the solution.