I the plant has projected net income of 1735000 2105000


Calculating AAR. You're trying to determine whether or not to expand your business by building a new manufacturing plant. The plant has an installation cost of $17 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,735,000, $2,105,000, $1,954,000, and $1,286,000 over these four years, what is the project's average accounting return (AAR)?

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Finance Basics: I the plant has projected net income of 1735000 2105000
Reference No:- TGS0642177

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