Question
Calculate ARR Project A Project B Investment 50,000 50,000 Expected Life 5 Years 5 Years Year Project A Project B 1 6,000 7,000 2 9,000
| Calculate ARR |
| |
|
| Project A | Project B |
| Investment | 50,000 | 50,000 |
| Expected Life | 5 Years | 5 Years |
|
|
|
|
| Year | Project A | Project B |
| 1 | 6,000 | 7,000 |
| 2 | 9,000 | 8,000 |
| 3 | 10,000 | 10,000 |
| 4 | 12,000 | 12,000 |
| 5 | 14,000 | 16,000 |
| Total Income | 51,000 | 53,000 |
Calculate the annual average return using the formula discussed in class
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Finance For Non-Finance Executives
Authors: Anurag Singal
1st Edition
1952538327, 9781952538322
