Question
A project has an initial cost of $44067 and a three-year life. Better Car Insurance uses straight-line depreciation to a book value of zero over
A project has an initial cost of $44067 and a three-year life. Better Car Insurance uses straight-line depreciation to a book value of zero over the life of the project. The projected net income from the project is $1627, $3532, and $1790 a year for the next three years, respectively. What is the average accounting return (AAR)?
(Enter your answer in DECIMAL (not in percent). For example, if the result of your calculation is 1.23%, enter 0.0123) (Round your answer to the nearest thousands (upto three decimal places). i.e. if your answer is 1234.56789, enter 1234.568)
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