A new project has an initial cost of $255,000. The equipment…

A new project has an initial cost of $255,000. The equipment will be depreciated on a straight-line basis to a zero book value over the five-year life of the project. The projected net income each year is $13,300,$18,100, $20,360, $15,200, and $12,000, respectively. What is the average accounting return?

A new project has an initial cost of $175,000. The equipment…

A new project has an initial cost of $175,000. The equipment will be depreciated on a straight-line basis to a book value of $67,000 at the end of the four-year life of the project. The projected net income each year is $15,400,$18,150, $23,500, and $15,300, respectively. What is the average accounting return?

You are considering the following two mutually exclusive pro…

You are considering the following two mutually exclusive projects. The crossover rate between these two projects is ___ percent and Project ___ should be accepted if the required return is greaterthan the crossover rate. Year Project A Project B 0 −$ 33,000 −$ 33,000 1 21,000 13,160 2 13,000 11,000 3 13,000 24,500