Accounting Rate of Return Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows a. Cobre Company is considering the purchase of new equipment that will speed up the process for extracting copper. The equipment will cost $4,400,000 and have a life of 5 years with no expected salvage value. The expected cash flows associated with the project are as follows: Year Cash Revenues Cash Expenses $4,800,000 $6,000,000 6,000,000 4,800,000 6,000,000 4,800,000 6,000,000 4,800,000 6,000,000 4,800,000 require investment of $75,000. The expected cash revenues minus cash b. Emily Hansen is considering investing in one of the following two projects. Either project wi an expenses for the two projects follow. Assume each project is depreciable. Year Project A Project B $22,500 $22,500 30,000 30,000 45,000 45,000 75,000 22,500 75,000 22,500 c. Suppose that a project has an ARR of 30% (based on initial investment) and that the average net income of the project is $120,000. d. Suppose that a project has an ARR of 50% and that the investment is $150,000. Required: 1. Compute the ARR on the new equipment that Cobre Company is considering. Round your answer to one decimal place