You’re trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $12 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,860,300, $1,913,600, $1,882,000, and $1,335,500 over these four years, what is the project’s average accounting return (AAR)? (Do not round your intermediate calculations. Round the final answer to 2 decimal places. Omit % sign in your response.)
Q52 M
Average Accounting Return = Average yearly profit/ Initial Investment
Average yearly profit= Sum of Net Income/ Number of years
= $1,747,850
AAR = $1,747,850/ $12,000,000
= 14.565%
You’re trying to determine whether to expand your business by building a new manufacturing plant. The...
Question#3- You’re trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $12 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,856,400, $1,909,700, $1,878,100, and $1,331,600 over these four years, what is the project’s average accounting return (AAR)? (Do not round your intermediate calculations. Round the final answer to 2 decimal places. Omit % sign in your...
You’re trying to determine whether or not to expand your business by building a new manufacturing plant. The plant has an installation cost of $10.8 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,293,000, $1,725,000, $1,548,000, and $1,310,000 over these four years, what is the project’s average accounting return (AAR)?
You’re trying to determine whether or not to expand your business by building a new manufacturing plant. The plant has an installation cost of $10.8 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,293,000, $1,725,000, $1,548,000, and $1,310,000 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 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,856,100, $1,909,400, $1,877,800, and $1,331,300 over these four years, what is the project's average accounting return (AAR)? (Do not round your intermediate calculations. Round the final answer to 2 decimal places. Omit % sign in your response.)
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You're trying to determine whether or not to expand your business by building a new manufacturing plant. The plant has an installation cost of $10.8 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,293,000, $1,725,000, $1,548,000, and $1,310,000 over these four years, what is the project's average accounting return (AAR)? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,...
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Question 27 5 points Save Answer You're trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $12 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,856,400, $1,909,700, $1,878,100, and $1,331,600 over these four years, what is the project's average accounting return (AAR)? (Do not round your intermediate calculations. Round the final answer to 2 decimal places....