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Posted: June 10th, 2024

You are looking at a three-year project with a projected net income of $100

You are looking at a three-year project with a projected net income of $100, $125, and $140 in each of the three years of the project’s life. The cost is $600, which will be depreciated straight-line to zero over the three-year life of the project. What is the average accounting return (AAR)?

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