QUESTION 1.2

OUT AUTEM LTEM Thoko 23062020 Compatibility Mode) - Word Product Activation Fored) REFERENCES MAILINGS REVIEW VIEW ADO-INS A l AaBbg el Asiaca) al Aa 1 Heading 1 T Heading 2 Heading 3 1 Heading # 1 Heading 5 Normal 1 No Paragraph Styles Total Discounted PV 734 860 Less Cost 420 000 NPV 314 860 1.2 SNJ Wholesalers Limited is considering opening a new sales branch. Two possible sites have been identified for this purpose. Site A has an area of 30 000 square metres. It will require an average investment of R6 000 000 and will produce an average operating profit of R600 000 a year Site B has an area of 20 000 square metres and it will require an ad average investment of R4 000 000 and will produce an average operating profit of R500 000 a year 4 Required 121 Determine the accounting rate of return of each investment opportunity 122 Which site would you select and why? I 118 QUESTION TWO