Question: please explain answer 4. Calculating AAR You're trying to determine whether or not to expand your business by building a new manufacturing plant. The plant
please explain answer
4. Calculating AAR You're trying to determine whether or not to expand your business by building a new manufacturing plant. The plant has an installation cost of $12.5 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,368,000, $1,935,000,$1,738,000, and $1,310,000 over these four years, what is the project's average accounting return (AAR)
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