5.) Stellen Co Ltd is considering two investment projects, Project Kherson and Project Kramatorsk, each of which requires an initial investment of R500 000.The Company s cost of Capital is 20 %.Assume that the projects will produce the following after tax cash flows:

Year	Project Kherson (R)	Project Kramatorsk (R)
1	100 000	250 000
2	150 000	200 000
3	250 000	150 000
4	400 000	100 000

Required: 5.1) Calculate the Average Return for each project. 5.2) Calculate the payback (PBP) for each project. 5.3) Calculate the NPV for each project. 5.4) Calculate the internal rate of return (IRR)

6.) If the two projects are mutually exclusive and the cost of Capital is 15 %, which project (s) Should Stella Co Ltd undertake based on the NPV method