XYZ Corporation is considering a capital budgeting project and requires a detailed analysis. The company has provided

you with the following financial information and ratios:

Return on Investment $($ROI$)$: $15\%$

Payback Period: $3$ years

Net Present Value $($NPV$)$: R$50,000$

Internal Rate of Return $($IRR$)$: $12\%$

Cash Flows are as follows: Year $1$: R$20000$ Year $2$: R$30000$ Year $3$: R$40000$

QUESTION

Calculate the ARR for XYZ Corporation. Assume depreciation is calculated on the straight$-$line method

and that the project has a scrap value of R$5000.$