Management wishes you to consider investing in one of the following projects (cash flow forecasts provided). Using the Accounting Rate of Return (ARR) method, which would you choose?

	Year 0	Year 1	Year 2	Year 3	Year 4	Year 5
Project A	($800)	$50	$100	$200	$300	$350
Project B	($800)	$350	$300	$200	$100	$50

Assume a target ARR of 4.5%pa.

Group of answer choices

Project A.

Project B.

Neither project A nor project B.

Either project A or project B.

Cannot be determined.