Question: QUESTION 2 (1o Marks] REQUIRED Study the information given below which was made available by Levis Limited and calculate the following: 2.1 Accounting Rate of
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QUESTION 2 (1o Marks] REQUIRED Study the information given below which was made available by Levis Limited and calculate the following: 2.1 Accounting Rate of Return on average investment of Project A (answer expressed to two decimal places}. {3 marks] 2.2 Net Present Value of Project A (amounts rounded off to the nearest Rand.) {3 marks] 2.3 Internal Rate of Return of Project 8 [answer expressed to two decimal places). [4 ma rks] INFORMATION The following information relates to two capital investment projects, under consideration by Levis Limited for 2021: Project A Project B Initial cost R800 000 R800 000 Expected useful life Scrapresidual value (not included in the figures below} R80 000 Expected annual profits: R End of: Year 1 105 000 Year 2 105 000 Yea r 3 105 000 Yea r 4 105 000 Yea r 5 105 000 The company estimates that its cost of capital is 15%. The straight-line method of depreciation is used
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