QUESTION 4 (20 Marks) REQUIRED Study the information provided below and answer the following questions: 4.1 Calculate the Payback Period for both projects. (Answers must be expressed in years, months and days.) (6 marks) 4.2 Calculate the Accounting Rate of Return for Project B using the average investment. (4 marks) 4.3 Calculate the Net Present Value of each project. (Round off amounts to the nearest Rand.) (6 marks) 4.4 Calculate the Internal Rate of Return for Project B. (4 marks) INFORMATION The following information relates to two capital investment projects. Project B R 400 000 4 years Initial cost Expected useful life Scrap value Depreciation Expected net cash inflows Project A R420 000 4 years R20 000 R100 000 p.a. Expected cash flows Nil R100 000 p.a. Expected cash flows Projected profit R 140 000 R 110 000 R 10 000 1st year 2nd year 130 000 110 000 10 000 3rd year 120 000 110 000 10 000 4th year 110 000 110 000 10 000 The company's cost of capital is 12%