Question: 2 Using both the Accounting rate of return method and the payback period method, advice a company on the order in which it should invest

2 Using both the Accounting rate of return method and the payback period method, advice a company on the order in which it should invest in these three potential projects planned which all have a three year life. Each will require investment of 210,000 and will generate the following cash flows, after deducting all expected cash outflows: Project 1 - 80,000 per annum. Project 2 - 75,000 per annum. Project 3 - 90,000 per annum. Assume depreciation of 20,000 per annum

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