boost QUESTION 4 (20 Marks) REQUIRED Study the information provided below and answer the following questions: 4.1 Calculate the Payback period for both projects Answers must be expressed in years, months and days.) 42 Calculate the Accounting Rate of Return for Project Busing the average investment 43 Calculate the Net Present Value of each project. (Round off amounts to the nearest Rand.) (6 marks) (4 marks) (6 marks) (4 marks) 4.4 Calculate the Internal Rate of Retum for Project B INFORMATION The following information relates to two capital investment projects. Initial cos! Expected useful te Scrap value Depreciation Expected net cash inflows Project A R420 000 4 years R20 000 R100 000 pa Expected cash flows Project B R400 000 4 years NE R100 000 pa Expected cash flows Projected profit R 140 000 R 110 000 R 10 000 1 year 130 000 110 000 10 000 21 year 120 000 110 000 10 000 3 year 110 000 110 000 10 000 The company's cost of capital is 12%