Dreamit Electronics Ltd has identified a new machine that it is considering for purchase at the start of $2025.$ The cost the machine is R $4000000.$ The machine is expected to have a useful life of five years. No scrap value is anticipated. The annual profits that are expected to be generated from the machine are as follows

Year $1$ R$600000$; Year $2$ R$620000$; Year $3$ R$700000$; Year $4$ R$660000$; Year $5$ R$560000.$

The cost of capital is $15\%.$ Depreciation is estimated at R$800000$ per year.

Prepare the Pro Forma Statement of Financial Position as at $31$ December $2024.$

QUESTIONS

$($Ignore the investment opportunity for $2025.)$

$2.$ Refer to the investment opportunity for $2025($the purchase of a new machine$)$ and calculate the following. Ignore taxes. Use only the four$-$decimals present value tables that appear after question $2\mathrm{.}3$ or in the module guide.

$2\mathrm{.}1$ Accounting Rate of Return on average investment $($expressed to two decimal places$).$

$2\mathrm{.}2$ Net Present Value. Your answer must reflect the calculations of the present values and NPV$.$ answer must include two net present value calculations $($using consecutive rates$/$percentages$)$ and interpolation.