Manly Manufacturing Ltd is evaluating an expansion of its business by purchasing new manufacturing equipment.The equipment has an installation cost of $26 million,which will be depreciated straight-line to zero over its three-year life.If the plant has projected net income of $2 348 000,$2 680 000,and $1 920 000 over these three years,what is the project's average accounting return (AAR)?
A)11.69 per cent
B)14.14 per cent
C)15.08 per cent
D)17.82 per cent
E)19.21 per cent

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The Answer of Manly Manufacturing Ltd is evaluating an expansion of its business by purchasing new manufacturing equipment.The equipment has an installation cost of $26 million,which will be depreciated straight-line to zero over its three-year life.If the plant has projected net income of $2 348 000,$2 680 000,and $1 920 000 over these three years,what is the project's average accounting return (AAR)?
A)11.69 per cent
B)14.14 per cent
C)15.08 per cent
D)17.82 per cent
E)19.21 per cent

Manly Manufacturing Ltd Is Evaluating an Expansion of Its Business