Sinan is considering investing in a project with an initial cost of $74,000 and a four-year life span. Sinan will depreciate the assets to zero on a straight-line basis over those four years. The projected net income from the project is $3,000, $4,400, $5,000, and $4,500 a year for the next four years, respectively. What is the project's average accounting return?

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Heres how to calculate the projects average accounting return AAR 1 Calculate the annual depreciat... View the full answer