$3\mathrm{.}2$

REQUIRED

Refer to the information provided below and answer the following questions. $($Ignore taxes.$)$

$3\mathrm{.}2\mathrm{.}1$ Calculate the Benefit Cost Ratio $($expressed to two decimal places$)$ of both projects using

a discount rate of $12\%.$

$(6$ marks$)$

$3\mathrm{.}2\mathrm{.}2$ Refer to your answers in question $3\mathrm{.}2\mathrm{.}1.$ Which project should be chosen? Why?

$(1$ mark$)$

INFORMATION

Princeton Ltd had to choose between two projects, viz. Min and Vin, which are expected to have the following net cash flows:

$\backslash$table$[[$Year$,$Min,Vin$],[1,$R$120000,$R$270000],[2,R240000,$R$270000],[3,R300000,$R$270000],[4,R420000,R270000$