What is the projects average accounting return


You're trying to determine whether or not to expand your businessby building a new manufacturing plant. The plant has aninstallation cost of $16 million, which will be depreciatedstraight-line to zero over it's four year life. If the planthas projected net income of $1,643,000 and $1,987,000 and$1,523,000 and $1,308,000 over these four years, what is the projects average accounting return (AAR?

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Accounting Basics: What is the projects average accounting return
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