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Pluto Corporation is considering an investment that will cost $ 2 1 0 , 0 0 0 and last for three years. The investment will

Pluto Corporation is considering an investment that will cost $210,000 and last for three years. The investment will be amortized on a straight-line basis over that period. Earnings generated by the investment before amortization and taxes over this period are as follows:
Year 1 $110,000
Year 2120,000
Year 3150,000
Pluto Corporation has a tax rate of 25 percent. What is the AAR of this project?

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