QUESTION $3(20$ Marks$)$ Note: Where discount factors are required use only tha present value tables $($Appendix $1$ and Appendlx $2)$ that appear after QUESTION $3.3\mathrm{.}1$ REQUIRED Refer to the information provided below and calculate the following. $($Ignore taxes$)3\mathrm{.}1\mathrm{.}1$ Payback Period $($expressed in years, months and days$).(3$ marks$)3\mathrm{.}1\mathrm{.}2$ Accounting Rate of Return on average investment $($expressed to two decimal places$).(4$ marks$)3\mathrm{.}1\mathrm{.}3$ Internal Rate of Return $($expressed to two decimal places$)$ if the net cash flows are R$280000$ per year for five years. Your answer must include the calculations of two net present values $($using consecutive rates$/$percentages$)$ and interpolation. INFORMATION An investment in a project is expected to have the following net cash flows and net profits: $(6$ marks$)$ Year Net cash flows $0($R$900000)1$ R$300000$ R$1200002$ R$430$O$0$O R$2500003$ R$450000$ R$2700004$ R$200000$ R$20000$ s R$190000$ R$10000$ No scrap value is anticipated. The minimum required rate of return is $15\%.3\mathrm{.}2$ REQUIRED Refer to the information provided below and answer the following questions. $($Ignore taxes.$)3\mathrm{.}2\mathrm{.}1$ Calculate the Benefit Cost Ratio $($expressed to two decimal places$)$ of both projects using a discount rate of $12\%.3\mathrm{.}2\mathrm{.}2$ Refer to your answers in question $3\mathrm{.}2\mathrm{.}1.$ Which project should be chosen? Why? $(6$ marks$)(1$ mark$)$ INFORMATION Princeton Ltd had to choose between two projects, viz. Min and Vin, which are expected to have the following net cash flows: Year Min Vin $$ R$120000$ R$2700002$ R$240000$ R$2700003$ R$300000$ R$2700004$ R$420000$ R$270000$ Each project requires an initial investment of R$600000.$ A scrap value of R$50000($not included in the figures above$)$ is expected from Project Min only. $$ END OF PROJECT