What is project average accounting return

Assignment Help Financial Management

Reference no: EM131328973

You're trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $12.3 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1, 884, 300, $1, 937, 600, $1, 906,000, and $1, 359, 500 over these four years, what is the project's average accounting return (AAR)? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Average accounting return

Reference no: EM131328973

Questions Cloud

Write a poem or song about your book : Please read a book of your choice. As you are reading think about the key ideas in the story. Write a poem or song about your book. Write a one-person play about your book. Create a poster with pictures and words that highlights key events in your bo..

Search the web for security education and training programs : Keep a list and see which category has the most examples. See if you can determine the costs associated with each example. Which do you think would be more cost-effective in terms of both time and money?

List and briefly describe the two primary legislative acts : List and briefly describe the two primary legislative acts (federal laws) that indicate requirements for how low-level and high-level radioactive waste should be managed.List, briefly describe and distinguish among several (2-3) of the primary fede..

Design several security awareness posters : What other themes can you come up with?

What is project average accounting return : You're trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $12.3 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected..

Estimate the expected return on the stock : Use the information below to estimate the expected return on the stock of W. M. Hung Corporation.- Long-run average stock return = 10%.

Police searches of young and older male drivers : Read and review the posted article and analysis the article. Your original posting must be 150 - 250 words in order to adequately establish and support your analysis

Considering the purchase of new rapid diagnostic machine : Dublin Methodist Hospital is considering the purchase of a new rapid diagnostic machine. The system will cost $400,000 and will be depreciated straight-line to zero over its five-year life. It will be worth $50,000 at the end of that time. The hospit..

What return would you expect on a stock with a beta : What return would you expect on a stock with a beta of 2.0?- What return would you expect on a stock with a beta of 0.66?

User Account

All Pages