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Calculating AAR You're trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of exist15 million which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1, 938, 200, $2, 201, 600, $1, 876,000 and $1, 329, 500 over these four years, what is the project's average accounting return (AAR)?

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Financial Management, Finance

Category:- Financial Management
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