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Yutu LA DDAD Abc Aabeto 5 What is the IRR? 6. A project produces annual net income of 546,200, 551,800, and 562,900 over its
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Answer #1

A. 15.89 percent

Average accounting return (AAR) = [($46,200 + $51,800 + $62,900) / 3] / ($675,000/2)

Average accounting return (AAR) = 0.1589 or 15.89 percent

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