Mountain Frost is considering a new project with an initial…

Mountain Frost is considering a new project with an initial cost of $273,000. The equipment will be depreciated on a straight-line basis to a zero book value over the four-year life of the project. The projected net income for each year is $24,400,$24,600, $27,400, and $18,200, respectively. What is the average accounting return?

A company purchased an asset for $3,550,000 that will be use…

A company purchased an asset for $3,550,000 that will be used in a 3-year project. The asset is in the 3-year MACRS class. The depreciation percentage each year is 33.33 percent, 44.45 percent, and 14.81 percent, respectively. What is the book value of the equipment at the end of the project?