Answer ALL the questions in this section QUESTION ONE CAPITAL EXPENDITURE DECISIONS (20 MARKS) You recently...

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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) 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)