Depreciated straight-line to zero over its four-year life

Assignment Help Financial Management

Reference no: EM131532803

You’re trying to determine whether or not to expand your business by building a new manufacturing plant. The plant has an installation cost of $17.8 million, which will be depreciated straight-line to zero over its four-year life.

If the plant has projected net income of $1,775,000, $2,125,000, $1,994,000, and $1,306,000 over these four years, what is the project’s average accounting return (AAR)? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Average accounting return %

Reference no: EM131532803

Questions Cloud

Different types of cybermalls and shopping consortiums : Describe different types of cybermalls and shopping consortiums. What comprises a good e-commerce Web site?

Determine the amount of dividends each class of stock : Determine the amount of dividends each class of stock will receive given the following assumptions:

Determining the wers development team : Consider the following scenario. The WERS development team has determined that the current implementation of WERS leads to a race condition

Focus on the various conceptual theories : Focus on the various conceptual theories and models that are currently used in nursing research.

Depreciated straight-line to zero over its four-year life : The plant has an installation cost of $17.8 million, which will be depreciated straight-line to zero over its four-year life.

Relationship between organizational design and structure : What contingencies would cause an organization to choose an organic rather than a mechanistic structure?

Transferring a series of two messages : Consider two computers transferring a series of two messages using Stop-and-Wait ARQ. Suppose the first message is initially received with an error

What is the meaning of selective terrorism : What is the meaning of "selective terrorism" and how was it implemented by Michael Collins? Explain your answer in full

Reflect on the patient information : Select one of the three provided case studies. Reflect on the patient information.Consider an appropriate contraception treatment for the patient case study.

User Account

All Pages