Question: Answer ALL the questions in this section QUESTION ONE CAPITAL EXPENDITURE DECISIONS (20 MARKS) You recently accepted an assignment with Commitment Limited as a

Answer ALL the questions in this section QUESTION ONE CAPITAL EXPENDITURE DECISIONS (20 MARKS) You recently accepted an assignment with Commitment Limited as a financial consultant. One of your first assignments is the analysis of two proposed capital investment projects. Details of initial investments, after-tax cash flows and average annual profits are represented below: Initial investments Cash flows Average annual profits Year After-tax Cash flows Project A Project B (R50 000) (R50 000) 1234 R26 200 R14 200 R12 200 R14 200 R12 200 R14 200 R5 000 R14 200 R1 400 R1 700 1.1. Which project has a shorter payback period? Motivate your answer by doing the relevant calculations. (Express answer in years, months, and days) (12 marks)

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