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Problem regarding the projects average accounting return

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Problem: Trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $15 million, which will be depreciated straight-line to zero its four year life. If the plant has projected net income of $1,754,000, $1,820,500, $1,716,300 and $1,097,400 over these four years, whqt is the projects average accounting return (AAR)? Please provide the authentic solution of this question.

Reference no: EM131938462

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