The table below shows the profit after tax and the book value of investment for three

Projects A Project B Project C Project A Project B Project C

Year 1 300,000 250,000 1,500,000 1,200,000 1,000,000 400,000

Year 2 450,000 450,000 300,000 1,350,000 1,080,000 900,000

Year 3 500,000 500,000 400,000 1,215,000 972,000 810,000

Year 4 450,000 550,000 500,000 1,093,500 874,800 729,000

Year 5 500,000 300,000 787,320 656,100

Year 6 250,000 590,000

Calculate the Accounting Rate of Return (ARR) of the three projects and recommend the best option based on your calculation.