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Here is some information about two projects over 5 years. Calculate the ARR and decide which one is the best investment.

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Project A: The capital investment is £{ca}. In the first two years, the income is £{a1}, in the third year it is £{a3} and in the final two years it is £{a4}

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Project B: The capital investment is £{cb}. In the first year, there is no income, in years 2,3 and 4 the income is £{b2} and in the final year the income is £{b5}

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What is the average income for Project A?

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What is the average income for Project B?

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What is the ARR for Project A?

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What is the ARR for Project B?

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