Question: Suppose a firm invests $1,000,000 in a project. The initial cost is depreciated straight-line zero over its 4-year life. If the project has projected net

Suppose a firm invests $1,000,000 in a project. The initial cost is depreciated straight-line zero over its 4-year life. If the project has projected net income of $100,000, $200,000, $300,000, and $400,000 over these 4 years, what is the projects average accounting return (AAR)?

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