Average accounting return

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You are looking at a four-year project with a projected net income of $1000 in year 1, $2000 in year 2, $3000 in year 3, and $4000 in year 4. The cost is $10,000, which will be depreciated straight-line to zero over four-year life of the project. What is the average accounting return, or AAR?

Reference no: EM131152577

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