### What is the project average accounting return

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##### Reference no: EM13303485

Calculating AAR. 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 \$17 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of \$1,735,000, \$2,105,000, \$1,954,000, and \$1,286,000 over these four years, what is the project's average accounting return (AAR)?

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