Project A Project B

12,000 12,000
ARR%   100 ARR%   100
15,000 15,000
 80%  80%

By using Equation 5.2, the accounting rate of return (ARR) for each
project is:
Project A
12,000
ARR%   100
30,000
 40%
 Project B
12,000
ARR%   100
30,000
 40%