3.1 Define the term "minimum acceptable rate of return" (MARR) (2) 3.2 For Mashinini Enterprises, the current MARR is set at 11%. Would the MARR be adjusted upwards or downwards for the following scenarios: (a) An increase in the company tax rate, set by the South African Renenue Service. (b) The perceived risk on a project is high (c) There are a large number of projects to choose form Motivate your answer for each of the scenarios. 3.3 Balakane Construction is considering two capital investment options Investment Option 1 Purchase of a new large excavator (R950,000-year 0) The new excavator is projected to generate the following income on several new earthworks contracts: (2) (2) (2) Year Projected income 1 R220,000 2 R240,000 3 R350,000 4 R230,000 5 R420,000 Risk free MARR = 9% Risk-adjusted MARR for this option = 12% Investment Option 2 Purchase of several new tipper trucks to be used on earthworks hauling contracts (R1,000,000-year 0) The new trucks are projected to generate the following income on several new earthworks contracts: Year Projected income 1 R210,000 2 R240,000 3 R380,000 4 R280,000 5 R410,000 Risk free MARR = 9% Risk-adjusted MARR for this option = 14% (a) Perform economic analysis on the 2 options and determine which investment option should be chosen. Motivate your answer. (7) (b) Consider your answer in question (a) and the MARR values assigned to each of the investment options. Comment on the appropriateness of the company's