Alpha Company is considering investing in three projects: Solar, Asphalt and Equipment rental with initial investments of $1,300,000, $1,250,000 and $1,320,000 respectively. Each project is expected to have a life of six (6) years and an ending book value of $420,000. The expected profits to be generated by the projects are as follows: Profits after tax and depreciation Project Solar ii. iii. $ 130,000 160,000 255,000 265,000 290,000 290,000 1,390,000 Project Asphalt a. As the Accountant of Alpha Company, you are required to provide management with the relevant information to assist in deciding which project to undertake by calculating the following: i. iv. Project Equipment rental $ 110,000 $ 100,000 130,000 130,000 260,000 244,000 263,000 276,000 257,000 280,000 320,000 360,000 1,330,000 1,400,000 the average profits for each project. (5 marks) the average capital for each project. (5 marks) the accounting rate of return (ARR) on initial capital for each project. (5 marks) the accounting rate of return (ARR) on average capital for each project. (5 marks) b. Based on your calculations, which Project would you recommend the company to invest in? (1 mark) c. Calculate the payback period for the project selected in section B above. (4 marks)