1. Determine the time to break even for each project.

2. If the income in Years 6-10 would be better described by random variables in order to reflect the uncertainty about sales figures that are so far in the future, how would you go about modelling the NPV and IRR then? Briefly describe the approach you would follow and the results you would produce. Do not actually model and simulate this.

\begin{tabular}{l|r|r|} & Concept 1 & \multicolumn{1}{|c|}{ Concept 2 } \\ \hline Year 0 & R1250000 & R1450000 \\ Year 1 & R840000 & R300000 \\ Year 2 & - R10 000 & R380000 \\ Year 3 & R0 & R50 000 \\ Year 4 & R600 000 & R400 000 \\ Year 5 & R800 000 & R550 000 \\ Year 6 & R1 000 000 & R650 000 \\ Year 7 & R1 200000 & R975 000 \\ Year 8 & R1 400 000 & R1 210000 \\ Year 9 & R1 500 000 & R1 450000 \\ Year 10 & R1 550 000 & R1 700000 \end{tabular}