What is the project average accounting return

Reference no: EM132068136

Question: You're trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $11.7 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1, 824, 300, $1, 877, 600, $1, 846,000, and $1, 299, 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.)

Reference no: EM132068136

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