Fletcher Ltd is considering an investment project which will last for 3 years. The expected profits are e be: $$ £ 42,000 $$ in year $$ 1 ; £ 45,000 $$ in year 2 ; and $$ £ 52,000 $$ in year 3 . The project will require the purchase machine, which will cost $$ £ 150,000 $$ but which can be sold for $$ £ 30,000 $$ at the end of year 3 . What is the average accounting rate of return on the project? $$ 525.6 \% $$ $$ 125.4 \% $$ $$ 92 \% $$

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The Average Accounting Rate of Return (ARR) for the project is approximately $$ 51.48\% $$.

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