Nobe: Where applicable, effor to the present value tables $($Appendioes $1$ and $2)$ that appear afer quastion five.

S$\mathrm{.}1$ Esba Erterpreses has the option to invest in machinery in projects A and B bat inance is orly aralable it inveit in one of them. You ire given the following projected data.

Additional informotion

$1.$ Al cash lows tala place at he end of the year encepl he obiginal imestrnent in the propect which tabes place at the beginning of the proiect.

$2.$ Propet $\backslash ($ A $\backslash )$ machinery aill be disposed of at the end cif jear $5$ with a scrap value of R$00000$

$3.$ Propet $8$ machinery aill be doposed of at the end of year $5$ with a nil scrap value.

$4.$ Degreciation is calculaled on a straightire basis.

$5.$ The thowurt rile bo be uned by the wompany is $125$

Required

Use fin information provided by Esta Enfarptses to answee the folowing questions:

$5\mathrm{.}1\mathrm{.}1$ Galodate the papack period for propect $\backslash$&$.($Hnseer must be eoperssed in years and monss$)$

$5\mathrm{.}12$ Calodate the accounting rate of retum $($on average investrent$)$ for profect h$.($inseer mult be esprossed to two decinal placet$)$

$5\mathrm{.}13$ Galcuate the net present value of each propet. $($Round off amounts to the rearest Rand$)$

$5\mathrm{.}1\mathrm{.}4$ Using your asowen form question $5\mathrm{.}1\mathrm{.}3,$ which prowect thould te chosen? Why?