Please show all calculations and steps ,

1.3 The power utility generated R500 000 in accounting prots last year. This year, having invested R2 000 000, R20 000 were received in prots. Calculate the return on investment for Eskom. What steps should Eskom take in light of the calculated return on investment? (10 marks) 1.4 The manager of Eskom is evaluating the purchase of a new equipment for solar power. Two options are available. The first equipment costs R1 000 000 and will increase operating prots to R300 000 a year. The second equipment costs R1 500 000 and will increase operating prots to R450 000 a year. Both equipments have a life of 10 years after which there is no salvage value. For tax purposes, the company can depreciate the machines linearly. The cost of capital for Eskom is 12% and the marginal tax rate 30%. Using the Net Present Value criterion, which equipment (if any) should Eskom invest on? Explain (15 marks)