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QUESTION 6: Accounting rates of return You're trying to determine whether to expand your business by building a new manufacturing plant. The plant has an
QUESTION 6: Accounting rates of return You're 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 projected 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)
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