| Investment Appraisal - Exercise 3.6 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| Average Profit | x 100 | ||||
| Original Equity Expenditure | |||||
| Project A | £8000 / 4 Years | x 100 | |||
| 12000 | |||||
| 0.16666666666666666 | |||||
| Project B | £6000 / 3 Years | x 100 | |||
| 12000 | |||||
| 0.16666666666666666 | |||||
| The business could choose either project as they have the same ARR. |