Rodriguez Inc

Rodriguez Inc.is considering a project that costs $200,000.The company expects the annual cash revenues to be $75,000 and annual expenses (including depreciation) to be $30,000.The project has a ten-year useful life and a residual value of $25,000.Assume Rodriguez Inc.uses the straight-line method of depreciation.
-Using the above information for Rodriguez,the accounting rate of return for the project is
(Round your answer to a whole percent)

A) 51 percent.
B) 22 percent.
C) 67 percent.
D) 40 percent.

Correct Answer:

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