The income from operations and net cash flow for Project Alpha are given below. Project Alpha requires an initial investment of $50,000, straight-line depreciation will be used, and no residual value is expected. What is the average rate of return for Project Alpha? Year Income from Operations Net Cash Flow 1 $15,000 $27,000 2 $14,000 $26,000 3 $13,000 $27,000 4 $12,000 $24,000 Totals $54,000
$104,000
a. 54%
b. 27%
c. 123.8%
d. 100%
a
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