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 $29 million, which will be depreciated straight-line to zero over its three-year life.If the plant has projected net income of $1,848,000, $2,080,000, and $2,720,000 over these three years, what is the project's average accounting return (AAR)?
A)14.69 percent
B)14.14 percent
C)15.03 percent
D)15.28 percent
E)14.21 percent

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The Answer of 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 $29 million, which will be depreciated straight-line to zero over its three-year life.If the plant has projected net income of $1,848,000, $2,080,000, and $2,720,000 over these three years, what is the project's average accounting return (AAR)?
A)14.69 percent
B)14.14 percent
C)15.03 percent
D)15.28 percent
E)14.21 percent

You're Trying to Determine Whether or Not to Expand Your