Mountain Frost is considering a new project with a book value of 132,500 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 21,200, 22,100, 24,600 and 18,100 respectively. What is the average accounting return? A 8.11% B 14.87% C 17.39% D 16.23%

Here's how to calculate the Average Accounting Return (AAR):1. **Calculate the average net income:** (21200 + 22100 + 24600 + 18100) / 4 = 132,500 / 2 = 21,500 / 21,500 / $132,500) * 100AAR ≈ 16.23%Therefore, the closest answer is **D. 16.23%**. It seems the question's intent was to use the initial book value, not the average book value, in the AAR calculation.