The projected annual net income is 595000 502000 486000 and


You're trying to determine whether or not you should expand your business at a fixed asset cost of $4.3 million. The firm uses straight-line depreciation to zero over the project life. The average book value is 2.15 million.

The projected annual net income is $595,000, $502,000, $486,000, and $324,000 over these four years. What is the average accounting return?

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Financial Management: The projected annual net income is 595000 502000 486000 and
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