Question: Consider two independent projects, A and B, with cash flows presented. Assume that the cost of capital, e the required rate of return is 14%.

Consider two independent projects, A and B, with cash flows presented. Assume that the cost of capital, e the required rate of return is 14%. 

Note the Year 0 cash flow represents the initial cost of each project.

Expected t After-Tar Cash Flows 2 $400 1950 $3,000 43,000 $900 $700. 

a. What is the average accounting rate of return (ARR) for project A $250 $550 $350 $500 Number. 

b. What is the average accounting rate of return (ARR) for project 87 Number.

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