Larry's Lanterns is considering a project which will produce sales of R240 000 a year for the next five years. The profit margin is estimated at 6 per cent. The project will cost R290 000 and be depreciated straight-line to a book value of zero over the life of the project. Larry's has a required accounting return of 8 per cent. This project should be _____ because the AAR is _____

rejected; 4,14 per cent.

rejected; 6 per cent.

rejected; 8,28 per cent.