PART B - Practical problems Answer all three questions below. You are required to write your answers in your own created new MS Word Document or you may use excel file too (Please read the Instructions carefully). (Total of (20x3 = 60 marks)) Question 1: (20 marks) Jessie's Tiles Ltd is reviewing a capital investment proposal. The initial cost of the project and the net cash flows for each year are presented in the schedule below. It is estimated that there would be no salvage value at the end of the investment's life. Yea Initial cost and carrying Annual net cash Annual net amount flows profit $250 000 80 000 $80 000 $25 000 52 000 65 000 27 000 AWN 22 000 50 000 24 000 10 000 45 000 31 000 0 40 000 33 000 Jessie's uses a required rate of return of 12 per cent to evaluate new capital investment proposals. Required: 1. Calculate the project's payback period. (5 marks) 2. Calculate the accounting rate of return on the investment proposal. Base your calculation on the initial cost of the investment. (5 marks) 3. Calculate the proposal's net present value. (10 marks)