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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 $12,820, which will
You're trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $12,820, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $2,403, $3,741, $2,872, and $1,683 over these four years, what is the project's average accounting return (AAR)?(Enter your answer as a percentage, omit the "%" sign in your response,and round your answer to 2 decimal places.For example, 0.12345 or 12.345% should be entered as 12.35.)
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