Question: Jimny Limited has a choice of investing in one of two projects. The following details relate to these: Investment required Expected Economic lifetime 3.2.1

Jimny Limited has a choice of investing in one of two projects.

Jimny Limited has a choice of investing in one of two projects. The following details relate to these: Investment required Expected Economic lifetime 3.2.1 Minimum required return of return 3.2.2 Net annual cash inflows 1st year 3.2.3 2nd year 3rd year year Project BWM 4 years R70 000 12% R15 000,00 R30 000,00 R28 000,00 R18 000,00 Project AMG 4 years Use the net present value method to determine which project Jimny Limited should choose Calculate the internal rate of return of Project AMG Calculate the Accounting Rate of Return for Project AMG R70 000 11% R23 000,00 R23 000,00 R23 000,00 R23 000,00 (8 marks) (6 marks) (5 marks)

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