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Average accounting return you are looking at a three-year

Question: Average Accounting Return. You are looking at a three-year project with a projected net income of $1,000 in Year 1, $2,000 in Year 2, and $4,000 in Year 3. The cost is $9,000, which will be depreciated straight-line to zero over the threeyear life of the project. What is the average accounting return, or AAR?

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