What is the aar of project

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Blink 281 Corporation is considering an investment that will cost $120,000 and last for five years. The investment will be amortized on a straight-line basis over that period. Earnings generated by the investment before amortization and taxes over this period are as follows:

Year 1$35,000 Year 237,000 Year 341,000 Year 445,000 Year 550,000

Blink 281 Corporation has a tax rate of 25 percent.

a. What is the AAR of this project?

Reference no: EM132491723

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