QUESTION $4$

$(25$ Marks$)$

REQUIRED

Refer to the investment opportunities for $2026($Project A and Project B$)$ and calculate the following. Where discount factors are required use only the four decimals present value tables that appear after the formula sheet or in the module guide. Ignore taxes.

$4\mathrm{.}1$ Payback Period of both projects $($expressed in years, months and days$).$

$(6$ marks$)$

$4\mathrm{.}2$ Accounting Rate of Return on initial investment of Project A $($expressed to two decimal places$).$

$(5$ marks$)$

$4\mathrm{.}3$ Net Present Value of both projects. Your answers must include the calculations of the present values and NPVs$.$

$(8$ marks$)$

$4\mathrm{.}4$ Internal Rate of Return $($expressed to two decimal places$)$ of Project A$.$ Your answer must include two net present value calculations $($using consecutive cost of capital rates$/$percentages$)$ and interpolation.

$(6$ marks$)$