Calculate the Accounting Rate of Return (ARR) for each project

The salvage value: 50,000

Estimated Useful Life: 6 years

Please show the calculation

Projected Cash Flows for 2 alternatives Project A Dallas Investment: $ 500,000 Year Cash outflow Cash inflow Net Cash Flow Cumuliative Cash Flow 1 $ 1,500,000 $ 1,000,000 $ (500,000) $ (500,000) N 1,000,000 $ 1,200,000 $ 200,000 (300,000) 3 $ 1,200,000 $ 1,200,000 un (300,000) S 950,000 $ 1,350,000 $ 400,000 100,000 1,100,000 $ 1,500,000 $ 400,000 unr 500,000 6 $ 1,200,000 $ 1,400,000 200,000 ur 700,000 Project B Collin Investment: $ 500,000 Year Cash outflow Cash inflow Net Cash Flow Cumuliative Cash Flow 1 900,000 $ 750,000 $ (150,000) $ (150,000) N 700,000 $ 950,000 $ 250,000 100,000 3 1,000,000 $ 1,200,000 $ 200,000 300,000 4 $ 1,200,000 $ 1,100,000 $ (100,000) $ 200,000 5 $ 1,100,000 $ 1,200,000 S 100,000 S 300,000 6 S 900,000 $ 1,100,000 200,000 S 500,000