Question: Q.8 (a) Using the information contained in the table below, calculate the accounting rate of return(ARR), showing all your working for both projects: Year Project

Q.8 (a) Using the information contained in the table below, calculate the accounting rate of return(ARR), showing all your working for both projects:

Year

Project A

Project B

(100)

(100)

0

20

35

1

25

35

2

35

30

3

25

15

4

25

10

5

25

10

6

10

-

(b)Explain the advantages and disadvantages of the accounting rate of return(ARR).[ 20 marks

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