The Nifty Fifty is considering opening a new store at a start-up cost of $628,000. The initial investment will be depreciated straight-line to zero over the 15-year life of the project. What is the average accounting rate of return given the following net income projections?
Years Net Income
1-5 $58,000
6-10 52,000
11-15 44,000
A. 16.42 percent
B. 16.68 percent
C. 17.01 percent
D. 17.18 percent
E. 16.35 percent