Seattle, Inc., is contemplating a project that costs $180,000. Expectations are that annual cash revenues will be $70,000 and annual expenses (including depreciation) will total $30,000. The project has a six-year useful life and a residual value of $30,000.
29.The accounting rate of return for the project is
A)53.3 percent.
B)22.2 percent.
C)66.7 percent.
D)38.1 percent.
30.The project's payback period is
A)2.31 years.
B)2.77 years.
C)2.14 years.
D)2.57 years.
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