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 $21 million, which will be depreciated straight-line to zero over its four-year life.
If the plant has projected net income of $1, 935,000, $2, 205,000, $2, 154,000, and $1, 386,000 over these four years, what is the project's average accounting return (AAR)?
Average accounting return %