Hasbro Plc an airline navigation supplier, is in the process of buying a startofthe art navigation

software. The initial investment in the new software is The annual cash flows are

expected to be:

Year

Year

Year

Hasbro Plc employs a cost of capital of The rate of inflation is expected to be for the

duration of the project.

Required:

a Calculate the ARR of the project, taking inflation into account.