The Manager at Northern Neck Manufacturing Reported a Need to Purchase

The manager at Northern Neck Manufacturing reported a need to purchase a new machine to clean and process fresh shrimp.In its simple form,the average investment is calculated as the arithmetic mean of the net initial investment at $650,000 and a net terminal cash flow of $24,000.The managerial accountant reports that the net terminal value of the new machine is $0,plus the net terminal amount of working capital is $24,000.The increase in expected annual after-tax income is expected at $34,000.
Required
Compute the average investment over 5 years.Compute the AARR on average investment.