Colins haberdashery products is considering a project that


Colin's Haberdashery Products is considering a project that would have an initial cost of $285,000 and a 4-year life. The project’s assets will be depreciated using straight-line depreciation to a zero book value over the life of the project. Projected cash flow from the project is forecast at $83,650, $92,850, $94,350 and $93,250 respectively for the next 4 years. Projected annual net income from the project is forecast at $12,400, $21,600, $23,100 and $22,000 for the next 4 years, respectively. What is the average accounting return? 6.94 percent 13.88 percent 15.66 percent 27.75 percent 31.31 percent

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Financial Management: Colins haberdashery products is considering a project that
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