Question: please help me with question Problem 9-6 Calculating AAR [LO4] You're trying to determine whether to expand your business by building a new manufacturing plant.
![please help me with question Problem 9-6 Calculating AAR [LO4] You're](https://s3.amazonaws.com/si.experts.images/answers/2024/09/66e0985e9f6b1_10166e0985dee4a7.jpg)
please help me with question
Problem 9-6 Calculating AAR [LO4] You're trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $11.5 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,804,300, $1,857,600, $1,826,000, and $1,279,500 over these four years. respectively, what is the project's average accounting return (AAR)? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Average accounting return 25.40 %
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
