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Problem:

You're trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $14 million, which will be depreciated straight-line to zero over its 4-year life. If the plant has projected net income of $1,721,000, $1,883,000, $1,447,000, and $1,290,000 over these 4 years, the project's average accounting return (AAR) is_______ percent.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91147764

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