Youre trying to determine whether 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 1,938,200, 2,201,600, 1,876,000 and 1,329,500 over these four years, what is the projects average accounting return (AAR)?

new You're trying to determine whether to expand your business by building a 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 1,938,200, 2,201,600, 1,876,000 and 1,329,500 over these four years, what is the project's average accounting return (AAR)