What is the project average accounting return

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You're trying to determine whether or not to expand your business by building a new manufacturing plant. The plant has an installation cost of $20.2 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,895,000; $2,185,000; $2,114,000 and $1,366,000 over these 4 years, what is the project's average accounting return (AAR)? Please use excel and explain conclusion.

Reference no: EM132460577

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