What is the projects 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 $21.4 million, which will be depreciated straight-line to zero over its four-year life. Required: If the plant has projected net income of $1,955,000, $2,215,000, $2,174,000, and $1,396,000 over these four years, what is the project’s average accounting return (AAR)?

Average accounting return %

Reference no: EM131041806

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