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| Don Adams Breweries is considering an expansion project with an investment of $1,500, The equipment will be depreciated to zero salvage value on a straight-line basis over 5 years. The expansion will produce incremental operating revenue of $400,000 annually for 5 years. The company’s opportunity cost of capital is 12%. Ignore taxes.What is the book (accounting) rate of return of the investment using the average investment method? What is the book (accounting) rate of return of the investment using the average investment method? A. 6.67% B. 13.33% C. 16.67% D. 26.67% |