Based Upon the Average Accounting Return (AAR)and the Information Provided

Multiple Choice

Based upon the average accounting return (AAR) and the information provided in the problem,you:

A) cannot compute the AAR of either project.
B) should accept project A because the AAR exceeds the required rate.
C) should accept project A because the AAR is less than the required rate.
D) should accept whichever project you prefer as they are equivalent from an AAR perspective.
E) should accept both project A and project B.