Question: Calculating AAR youre trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $18

Calculating AAR you’re trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $18 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,632,000, $2,106,500, $1,941,700, and $1,298,000 over these four years, what is the project’s average accounting return (A.AR)?

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