Question: Question 1 (25 Marks) The equipment coss R1000000 for each project and no scrap value is expected. The requived rate of retun is 12%. NOTE:


Question 1 (25 Marks) The equipment coss R1000000 for each project and no scrap value is expected. The requived rate of retun is 12%. NOTE: Where present value tabies are requied, use tables with 4 decinal places. REQUREO 1.1 Calculate the Payback Perod of Nik and Nak. Equipment. (Answer musk be eipressed in years. monts and dings) (8 maks) (6 marks) 1.3 Calculate the Net Presett Value of Nik Equipment. (Round off amounts to the nearest Rasd). (5 mara) 1.4 Calculate the Irtemal Rate of Recurs of Nak Equipment (answor exprotsed to tho secimal placts) [6 markt) APPENDIX 2 Table 2 : Present value of a regular annuity of R1 per period for n periods : PVFA (k,n) (1+x)21x1(1+x)n1 APPENDIX 1
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