Average Accounting Return You are looking at a three-year project with a projected net income of 2,000

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Average Accounting Return You are looking at a three-year project with a projected net income of

€2,000 in year 1, €4,000 in year 2, and €6,000 in year 3.

The cost is €12,000, which will be depreciated straight-line to zero over the three-year life of the project. What is the average accounting return (AAR)?

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Fundamentals Of Corporate Finance

ISBN: 9780077178239

3rd Edition

Authors: David Hillier, Iain Clacher, Stephen A. Ross

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