Youre trying to determine whether to expand your business by building a new manufacturing plant. The plant
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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 $13.5 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,570,000, $1,684,200, $1,716,300, and $1,097,400 over these four years, respectively, what is the project’s average accounting return (AAR)?
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1260153590
12th edition
Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan
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