A company that requires a 14.25% return on investment is considering a project with an initial capital outlay of $7,000,000. The project is expected to have an average book value of $1,500,000, average annual cash flow of $350,000, and average annual net income of $225,000. What is the average accounting return for the project?

 

Answer rating: 100% (QA)

To calculate the average accounting return AAR for the projectwe can use the fo... View the full answer