Average Rate of Return For Projects B and C

Project B:
1. $60,000 - $40,000= $20,000 2. Calculating the net profit per annum: Divide the total Net Profit by the number of years that the project runs for. 3. Finally Calculate the ARR: ARR=

Project C:

1. $130,000- $90,000= $40,000 2.

3.

or

or 0.0009%
ARR