What is the project average accounting return

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Question: The Waitangi Group has invested $24,000 in a high-tech project lasting three years. Depreciation is $7,300, $10,500 and $6,200 in Years 1, 2, and 3, respectively. The project generates pretax income of $3,280 each year. The pretax income already includes the depreciation expense. If the tax rate is 25 percent, what is the project's average accounting return (AAR)?

Reference no: EM132083266

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