Question $3($CAPITAL BUDGETING$)(20$ marks$)$

Munya Tsatsa $($Pty$)$ Ltd has R$1500000$ available for investment and must choose between the following two divisible projects:

$\backslash$table$[[$Year$,$Cash Flow Project A $($RAND$),$Cash Flow Project B $($RAND$)],[0,(1000000),(1200000)],[1,250000,400000],[2,300000,400000],[3,350000,400000],[4,420000,400000],[5,450000,400000]]$

The company's cost of capital for the company is $12\%.($Ignore tax$)$

Rounded your discount factor to $2$ decimal place and use a table like below for the tabulation of the Net Present value for each project.

$\backslash$table$[[$Year$,\backslash$table$[[$Cash Flow for$],[$Project A$]],\backslash$table$[[$Discount Factor$],[$@$12\%$