A company is trying to determine whether to expand its business by building a new...
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A company is trying to determine whether to expand its business by building a new manufacturing plant. The plant has an installation cost of $25,000 which will be depreciated straight-line to zero over its five-year life. The required return is 10 percent. If the plant has projected net income of $1,300, $2,100, $3,800, $4,600, and $5,500 over these five years, respectively, what is the project's average accounting return? Enter your answer as a decimal number (not as a percentage number) with 4 digits to the right of the decimal point in the box shown below. Your
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