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Project average accounting return

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Reference no: EM131612837

Your 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 over its four year life. If the plant has projected net income of $1,754,000, $1,820,500, $1,716,3000, and $1,097,400 over these four years, what is the project's average accounting return (AAR)?

Reference no: EM131612837

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