A company has two options. You are required to calculate the Accounting Rate of Return of the project

	Proposal I	Proposal II
Cost	120,000	90,000
Estimated life	6 Years	5 Years
Estimated sales	OMR 80,000	OMR 75,000
Cost: Material overhead Labor overhead Variable overhead	OMR 28,000 OMR 12,000 OMR 10,000	OMR 20,000 OMR 18,000 OMR 12,000

What is Average Rate of Return of Proposal I?

9.33%

25%

8.33%

27.7%

7.77%

12.5%

33.33%

37.5%

What is Average Rate of Return of Proposal II?

9.33%

25%

8.33%

27.7%

7.77%

12.5%

33.33%

37.5%