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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 $20.5 million, which
You're trying to determine whether to expand your business by building a new manufacturing plant The plant has an installation cost of $20.5 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,400,000, $935,000, $2,738,000, and $2,500,000 over these four years, what is the project's average accounting return (AAR)? 18.47% 16.47% 20.47% 22.47%
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