Calculating AAR Youre trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $12.6 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,430,000, $1,523,460, $1,716,300, and $1,097,400 over these four years, respectively, what is the projects average accounting return (AAR)?

Required in an Excel Sheet

1. Calculate the average net income.
2. Average book value
3. AAR