Requirement 1 , 2 & 4 are already correctly answered as shown in image provided.
Requirement 3:
ARR is 30%
Average net income of project is $120,000
Amount of investment is to be calculated
ARR = Average Net Income / Average Investment
here ARR is 30%
plotting values in formula,
30% = $120,000 / Average investment
Average investment= $ 120,000 / 30%
= $ 400,000
therefore average investment is $ 400,000 if ARR is 30% and net income is $ 120,000
Company in scenario C invests $ 400,000 in the project
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