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You're trying to determine whether to expand your business by building a new manufacturing plant. The plant installation cost is $16 million, which will be
You're trying to determine whether to expand your business by building a new manufacturing plant. The plant installation cost is $16 million, which will be depreciated straight-line to zero over its 4-year life. If the plant has projected net income of $1,643,000, $1,987,000, $1,523,000, and $1,308,000, what is the project's average accounting return (AAR)?
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