Note: Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. REQUIRED Use the information provided below to answer the following questions: 5.1 Calculate the Payback Period of both projects (expressed in years, months and days.) (4 marks) 5.2 Calculate the Accounting Rate of Return of Project A (expressed to two decimal places). (4 marks) 5.3 Calculate the Net Present Value of both projects. (6 marks) 5.4 Based on the NP-, which project should be chosen? Why? (1 mark) 5.5 Calculate the Internal Rate of Return of Project B (expressed to two decimal places). Your answer must include the calculations of two net present values. (5 marks) INFORMATION The following information relates to two capital investment projects: Project A Project B Initial cost R540 000 R600 000 Installation cost (not included in the other figures stated) R60 000 0 Expected useful life 5 years 5 years Scrap value (not included in the other figures stated) R40 000 0 Average annual profit R88 000 R70 000 Expected net cash inflows: R R Year 1 280 000 190 000 Year 2 210 000 190 000 Year 3 180 000 190 000 Year 4 160 000 190 000 Year 5 170 000 190 000 The company estimates that its cost of capital is 12%.