Question: QUESTION 3 [22] After a presentation to the board, they decided that due to a limited financial budget, the institution can only embark on one

QUESTION 3 [22] After a presentation to the board, they decided that due to a limited financial budget, the institution can only embark on one project at this stage. Evaluate the feasibility of the two projects: Project 1 - Student System Project 2 - Salary/Payroll system. Also advice the company accordingly. Table 1 below to contains the estimated cash flow for the two projects: Project 1 - Student System Project 2 - Salary/Payroll system INF3708 OCTINOV 2021 Year 0 1 2 3 4 Project 1 Project 2 -R198 000 -R197000 +R55 000 +R65 000 +R20 000 +R15 000 +R60 000 +R80 000 +R88 000 +R65 000 Table 1: Projects Cash Flow (in South Africa Rand R) Based on the information provided in Table 1 answer questions 3.1 to 3.4 below: 3.1 Calculate the net profit for the two projects. (6) 3.2 Calculate the Return on Investment (ROI) for the two projects. (6) 3.3 In which year will each of the projects payback its capital investment? (6) 3.4 Based on your answer in questions 3.1 -3.3, would you still recommend that Tomorrow's Future proceeds with the project (remember to specify the project) you indicated in Q1.1 as related mostly to the current and future needs of the organisation? Justify your answer. (4)

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