Determine project-s average accounting return


You are trying to find whether or not to expand the business by building the new manufacturing plant. Plant has the installation cost of $26 million, that will be depreciated straight-line to zero over its 3-year life. If plant has projected net income of $2,348,000, $2,680,000, and $1,920,000 over these 3 years, determine project's average accounting return i.e., AAR?

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Mathematics: Determine project-s average accounting return
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