Question: all steps Consider two independent projects, A and B, with cash flows presented in Table 1. Assume that the cost of capital, l.e. the required

all steps Consider two independent projects, A and B, with cash

all steps

Consider two independent projects, A and B, with cash flows presented in Table 1. Assume that the cost of capital, l.e. the required rate of return is 14%. Note the Year 0 cash flow represents the initial cost of each project. a. What is the average accounting rate of return (ARR) for project A? % Round your answer to two decimals. b. What is the average accounting rate of return (ARR) for project B? % Round your answer to two decimals. c. If the two projects are mutually exclusive, which of the two should be selecte using the ARR? Choose project B Choose project A

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