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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 $20.2
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 $20.2 million which will be depreciated straight line to zero over its four year life.
If the plant has projected net income of $ 1,895,000, $2,185,000 , $2,114,000,and $1,366,000 over these four years, what is project average accounting return (AAR)?
Average Accounting return ______%
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