discount rate is zero percent? What if the discount rate is 5 percent? If it is 19 percent? 6. Calculating AAR (LO4) Youre trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $12 million, which will be depreciated straight-line to zero over its four-year life. If the plant has proiected net income of $1.854,300, $1,907.600, $1,876.000 and $1,329,500 over these four years, what is the project's average accounting return (AAR)? 7. Calculating IRR (LO5) A firm evaluates all of its projects by applying the IRR rule. If the required return is 16 percent, should the firm accept the following project? F Cash Flow -$28,000 12.000 15,000 11,000 Click here for a description of Table: Questions and Problems 7. ON 8. Calculating NPV (L01) For the cash flows in the previous problem, suppose the use the NPV decision rule. At a required return of 11 percent should the firm accept this project What if the required return was 25 percent? 9. Calculating NPV and IRR (L01, 5) A project that provides annual cash flows of $17.300