What is the project average accounting return

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Question - You are trying to determine whether to expand your business by building a new manufacturing plane. The plant has an installation cost of $15 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,938,200, $2,201,600, $1,876,000 and $1,329,500 over these four years, what is the project's average accounting return (AAR)?

Reference no: EM133094391

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