Define what is the average accounting rate of return

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Question: Colin is analyzing a 3-year project that has an initial cost of $204,000. This cost will be depreciated straight-line to zero over three years. The projected annual net income for the three years is $13,700, $14,900, and $18,200. If the discount rate is 12 percent, what is the average accounting rate of return?

Reference no: EM131956226

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