A project that would require an initial cash outflow of $1,000,000 at the beginning is expected to produce average annual cash inflows of $40,000. The project is expected to have an average book value of $250,000 and average annual net income of $50,000. The company considering this project requires a return of 15.25%. 

What is the projects average accounting return. - do not round intermediate calculations

Answer rating: 100% (QA)

The average accounting return AAR is calculated as the ave... View the full answer