Capital Budgeting

Sir / Ma’am,
I’m struggling with this question from Capital Budgeting. Please help.
Able Ltd is considering a new project for which the following information is provided:
Initial Cost= $300000
Expected Life= 5 yrs
Estimated Scrap Value= $20000
Additional revenue from the project per year= $1200000
Incremental costs of the project per year=$30000
Cost of capital=10%

Q1) Calculate the NPV of the project
Q2) Calculate the ARR of the project.

Source: Section B, Mock Test.
While the mock paper was incredibly helpful, there was no explanation for this particular question, and hence I’m unable to figure out where I went wrong. Please answer ASAP since I’m planning to give my exam soon.

Thank you!