What is average accounting return

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Reference no: EM131543710

You want to determine if you should expand your business by building a new manufacturing plant. The installation cost will be $14 million, which will be depreciated straight-line to zero over its 4-year life. Net income from this plant is projected to be $1,005,000, $982,000, $1,342,000, and $1,815,000 over these 4 years. What is the average accounting return? 9.19% 18.37% 10.11% 16.46% 19.10%

Reference no: EM131543710

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