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JD Corporation invested in project with the initial cost of RM100,000. This investment will be depreciated by RM25,000 a year over its 4 years' life.

JD Corporation invested in project with the initial cost of RM100,000. This investment will be depreciated by RM25,000 a year over its 4 years' life. The net income is given as follows:

Year Net Income

1 RM7600

2 RM8000

3 RM9090

4 RM7700

What is the average accounting return (AAR) on this investment?


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