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You're trying to determine whether to expand your business by building a new manufacturing plant. The plant has an Installation cost of $11.9 million, which

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You're trying to determine whether to expand your business by building a new manufacturing plant. The plant has an Installation cost of $11.9 million, which will be depreciated stralght-line to zero over its four-year life. If the plant has projected net Income of $1,844,300, $1,897,600, $1,866,000, and $1,319,500 over these four years, respectively, what is the project's average accounting return (AAR)? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal Blaces, e.g., 3216.) 90 Avenge seunting return A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year 0 1 2 3 Cash Flow -$ 29,000 13,000 16,000 12,000 What is the NPV for the project if the required return is 12 percent? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV At a requlred return of 12 percent, should the firm accept this project? O No 0 Yes What is the NPV for the project if the required return is 24 percent? (A negative answer should be indicated by a minus sign. Do not round Intermedlate calculations At a required return of 2 percent. Should the firm accept this project? O No Yes What is the NPV for the project if the required return is 24 percent? (A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 3216.) NPV At a required return of 24 percent, should the firm accept this project? O Yes NO

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