You’re trying to determine whether or not to expand your business by building a new manufacturing plant. The plant has an installation cost of $17 million, which will be depreciated straight-line to zero over its four-year life.
If the plant has projected net income of $1,735,000, $2,105,000, $1,954,000, and $1,286,000 over these four years, what is the project’s average accounting return (AAR)? (Do not include the percent sign (%). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Dear student one can also take Actual investment to... View the full answer