1) Calculating AAR. You are trying to determine whether to expand your business by building new manufacturing plant. The plant has an installation cost of $13,000,000, which will be depreciated straight-line to zero over its 4-year life. The plant has the following projected net income over these 4 years:

Yr 1 : $1,210,000; Yr 2 : $1,720,000: : Yr 3 : $1,465,000; Yr 4: $1,313,000

What is the project average accounting return (AAR)?