questions a)Calculate the ARR, on average investment for project B b)Calculate the payback period for Project B. c)Which project should be accepted give reasons d)Calculate the ARR, on average investment for project C. e)Calculate the payback period for Project A. f)Calculate the ARR, on average investment for project A.

Question 3 The following information relates to three possible capital expenditure projects. Because of capital rationing only one project can be accepted. Project: A B C. R100 000 R115 000 R90 000 Initial cost Expected life years 5 years 5 years 4 R5 000 R7 500 R4 Scrap value 000 Cash-inflows R R R 40 000 50 000 27 End year 1 500 2 35 000 35 000 32 500 3 32 500 25 000 47 500 4 30 000 25 000 50 000 5 27 500 25 000 The company estimates its cost of capital is 18%. Required: (a) Calculate the ARR, on average investment for project B