What is the projects average accounting return

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Reference no: EM131300112

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 $18.6 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,815,000, $2,145,000, $2,034,000, and $1,326,000 over these four years, what is the project’s average accounting return (AAR)?

Reference no: EM131300112

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