Saxon company is considering a project that will generate a net income of 50,000 in the 1st year, 75,000 in the 2nd year, and 90,000 in the 3rd year. The cost of the project is 700,000 and this cost will decrease to zero in the three years when the investment begins. What is the average accounting return?

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The average accounting return AAR can be computed using the formula Average ... View the full answer