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there are presently (2) projects available to shrewsberry limited,however the company only has cash available of one...

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Accounting

there are presently (2) projects available toshrewsberry limited,however the company only has cash available ofone of them.
                      ProjectR.           Project S
investment.900000.           600000
Depreciation straight line    straight line
cost of capital14%.                      14%
lifespan.        5years.                   5 years     
residual        84000.                    nil    
netprofit.         
year1.             56000.                 7000
year2               80000                7000
year3               102000.             7000
year4.               130000              7000
year5.               152000              7000
required:
1.1 calculate the accounting rate of return for project R.
1.2 Calculate the payback period for both projects.
1.3 calculate the net present value for both projects
1.4 which project should the company choose and why?

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