What is the project average accounting return

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Reference no: EM131524838

You’re trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $12380, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $2118, $2624, $2765, and $2362 over these four years, what is the project’s average accounting return (AAR)? (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)

Reference no: EM131524838

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