i. You are looking at a three-year project with a projects net income of RM2,000 in year 1, RM4,000 in year 2, and RM6,000 in year 3. The cost is RM12,000, which will be depreciated straight-line to zero over the three-year life of the project. What is the average accounting return?

ii. Buy Coastal, Inc., imposes a payback cutoff of three years for its international investment projects. If the company has the following two projects available, should it accept either of them?

Year	Cash Flow (A)	Cash Flow (B)
0	-RM40,000	-RM60,000
1	19,000	14,000
2	25,000	17,000
3	18,000	24,000
4	6,000	270,000