Question: Drip Constrictors obtained information for a project which it intends choosing. The following details are available: Cash outlay - R 6 0 0 0 0

Drip Constrictors obtained information for a project which it intends choosing. The following details are available: Cash outlay- R600000, Economic Life-4 years, Average annual net cash inflow over the economic life- R280000, Depreciation- R150000, Average annual profits- R130000. Determine the payback period and the ARR for the project.
1. In the context of the results derived from question.
2. Comment on the appropriateness of the methods used in assessing the project.

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