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Debora [2.8K]
3 years ago
10

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?
Business
1 answer:
Viktor [21]3 years ago
7 0
Total profit= 1200 plus 2300 plus 1800
average profit = total profit divided by 3
average accounting return= average profit divided by initial investment= 5.52 percent
thats one way
other way is to take average investment = (intial investment plus scrap value) divided by 2
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<em>Find out more at brainly.com/question/13956837. </em>

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