What is the project average accounting return

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Reference no: EM132021958

You’re trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $10067, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $2402, $3324, $2835, and $2412 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.

Reference no: EM132021958

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