The firm has a required accounting return of 11 percent


The Broken Egg is considering a project that will produce sales of $87,000 a year for the next 4 years. The profit margin is estimated at 6 percent. The project will cost $90,000 and will be depreciated straight- line to a book value of zero over the life of the project. The firm has a required accounting return of 11 percent. Using AAR should this project and why?

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Financial Management: The firm has a required accounting return of 11 percent
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