Mary is considering investing in three projects: Omega, Alpha and Sigma with initial investments of $300,000, $250,000 and $320,000 respectively. Each project is expected to have a life of five (5) years and an ending book value of $200,000. The expected profits generated by the projects are as follows:Profits after tax and depreciation Project Omega Project Alpha Project Sigma $ $ $ 90,000 30,000 40,000 90,000 60,000 80,000 65,000 120,000 160,000 55,000 33,000 44,000 90,000 57,000 76,000 390,000 300,000 400,000 Please assist Mary in deciding which project to invest in by calculating: the average profits for each project. the average capital for each project. the accounting rate of return (ARR) on initial capital for each project.

Mary is considering investing in three projects: Omega, Alpha and Sigma with initial investments of $300,000, $250,000 and $320,000 respectively. Each project is expected to have a life of five (5)...

Mary is considering investing in three projects: Omega, Alpha and Sigma with initial investments of $300,000, $250,000 and $320,000 respectively. Each project is expected to have a life of five (5) years and an ending book value of $200,000. The expected profits generated by the projects are as follows:

Profits after tax and depreciation

Project Omega	Project Alpha	Project Sigma
$	$	$
90,000	30,000	40,000
90,000	60,000	80,000
65,000	120,000	160,000
55,000	33,000	44,000
90,000	57,000	76,000
390,000	300,000	400,000

Please assist Mary in deciding which project to invest in by calculating:
1. the average profits for each project.
2. the average capital for each project.

the accounting rate of return (ARR) on initial capital for each project.

Jun 09, 2022

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Mary is considering investing in three projects: Omega, Alpha and Sigma with initial investments of $300,000, $250,000 and $320,000 respectively. Each project is expected to have a life of five (5)...

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