Projects average accounting return

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Reference no: EM13741144

You're trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $17 million, which will be depreciated straight-line to zero over its 4-year life. If the plant has projected net income of $1,869,000, $1,629,000, $1,600,000, and $1,867,000 over these 4 years, the project's average accounting return (AAR) is percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

Reference no: EM13741144

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