PQR Enterprises is assessing two projects, Project One and Project Two, each requiring an initial investment of CAD 60,000. The after-tax cash inflows are as follows:

Year	Cash Flows (Project One)	Cash Flows (Project Two)
Initial Investment	(60,000)	(60,000)
1	20,000	15,000
2	20,000	20,000
3	10,000	25,000
4	10,000	25,000

a. Calculate the Accounting Rate of Return (ARR) for each project.

b. Which project should the company select if the target ARR is 10%?