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Increased Accuracy is the first upgrade of Path 1 for the Mortar Tower in BTD5. In BTD4, it is called Greater Accuracy and it is the first upgrade. It shrinks the target, allowing the mortars to pop Bloons more accurately. At first it might seem bad that the target area gets smaller but it does not affect the explosion size in any way.
Increased Accuracy in BTD5
The targeting symbol before (left) the Greater Accuracy upgrade and after (right)