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2. Average Rate of Return (ARR) Project B 4,000 EO Project D 6,000 EO Project A 5,000 1,000 1,000 5,000 6,000 4,000 Initial investment Year
2. Average Rate of Return (ARR) Project B 4,000 EO Project D 6,000 EO Project A 5,000 1,000 1,000 5,000 6,000 4,000 Initial investment Year 1 est.profits Year 2 est, profits Year 3 est. profits Year 4 est. profits Year 5 est. profits ARR EO Project C 4,500 500 3,000 3,000 3,000 5,000 Project E 9,000 1,000 7,000 7,000 6,000 6,000 4,000 25,000 6,000 5,000 7,000 12,000 7,000 Ahmed is considering investing in five different projects. Using the information above make a recommendation as to which project he should choose. Explain your answer (and show your workings) (5 marks) Project D Project Project 05.000 384 words 10
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