Expand your business by building new manufacturing plant

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Reference no: EM131063914

You’re trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $13007, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $2217, $2042, $2659, and $2550 over these four years, what is the project’s average accounting return (AAR)? (Enter your answer as a percentage; omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)

Reference no: EM131063914

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