Answer:
        Computation of Accounting Profit of the new project
Years        Cash Revenue        Cash expenses  Depreciation      Profit
1                  $6,000,000           $4,800,000         720,000         480,000
2                  6,000,000             4,800,000           720,000        480,000
3                  6,000,000            4,800,000            720,000        480,000
4                  6,000,000             4,800,000          720,000        480,000
5                 6,000,000             4,800,000           720,000         480,000
 Accounting rate of return of the new project 
                                          =  Average Profit / Initial  investment 
                                        =  $480,000/$3,600,000
                                        =  13.3%
2. Project A 's ARR =  30%
    Project B's  ARR = 50%
  New Project's ARR   =  13.3% 
Emily Hansen should choose project with highest ARR. Therefore, project B should be selected since it has highest ARR of 50% as compare to others. 
                                        
Explanation: