Calculate the ARR for projects A and B from the following.

Project A              project B

Investment           20000                            30000

Expected life        4 yrs                     5 yrs

No scrap or salvage value.

Projected net income after depn and taxes

Years                   Project A (Rs.)               Project B(Rs.)

1                 2000                              3000

2                 1500                              3000

3                 1590                              2090

4                 1000                              1009

5                 nil                                  1000