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A is considering the following projects to invest . Which one should A invest a. In Accounting rate of return method b. In Pay back

A is considering the following projects to invest . Which one should A invest

a. In Accounting rate of return method

b. In Pay back period method

Project A Project B Project C Project D
Initial invest $9,920 10,880 8,000 11,920
Cash inflow : Year 1 3,200 3,800 2,600 4,000
Cash inflow : Year 2 3,800 5,000 2,800 5,400
Cash inflow : Year 3 3,600 3,600 3,200 3,600
Cash inflow : Year 4 3,200 2,400 1,600 2,600

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