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You re trying to determine whether or not to expand your business by building a new manufacturing plant. The plant has an installation cost of

Youre trying to determine whether or not to expand your business by building a new manufacturing plant. The plant has an installation cost of $15 million, which will be depreciated straight line to zero over its four-year life. If the plant has projected net income of $1416000, $1868000, $1562000, and $985000 over these four years, what is the projects average accounting return (AAR)?

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