Martin Short,Managing Director of Mills Ltd,has received a report from his Finance Manager recommending four investment projects for his approval.However,the firm has only sufficient funds to invest in one project.The firm's rate of return is 6%.The Accounting Rate of Return for each project is: A - 10%,B - 8%,C - 12%,D - 14%.Short will select:

Question

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The best choice would be to invest in Project D, as it has the highest Accounting Rate of Return at 14%. This is much higher than the firm's rate of return of 6%, which means that the project will generate a significant return on investment, making it the most profitable option for the firm. Projects A, B, and C all have Accounting Rates of Return that are lower than Project D, so they would not be the best choice for Mills Ltd to invest in.

Martin Short,Managing Director of Mills Ltd,has Received a Report from His