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redrat22Lv1
11 Apr 2020
You’re trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $12,120, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $2,316, $2,807, $2,646, and $1,508 over these four years, what is the project’s average accounting return (AAR)?
You’re trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $12,120, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $2,316, $2,807, $2,646, and $1,508 over these four years, what is the project’s average accounting return (AAR)?
erinhare45Lv2
2 Jun 2021