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  3. 23. a project has cash flows of -$152,000, $60,800

23. A project has cash flows of -$152,000, $60,800, $62,300 and $75,000 for years 0...

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23. A project has cash flows of -$152,000, $60,800, $62,300 and $75,000 for years 0 to 3, respectively. The required rate of return is 15 percent. What is the profitability index? Should you accept or reject the project based on this index value? A. 0.98; accept B. 1.08; accept C. 1.02; accept D. 0.93; reject E. 0.98; reject 24. A project has an initial cost of $27,000 and a three-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 $1,600, $2,200, and $1,700 a year for the next three years, respectively. What is the average accounting return? A. 6.79 percent B. 13.58 percent C. 7.35 percent D. 14.69 percent E. 10.14 percent

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