What is the projects average accounting return

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Reference no: EM131069117

You’re trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $12.5 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,904,300, $1,957,600, $1,926,000, and $1,379,500 over these four years, what is the project’s average accounting return (AAR)?

Reference no: EM131069117

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