QUESTION 4 (20) 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) 4.2 Calculate the Accounting Rate of Return on initial investment for Project B. (4) 4.3 Calculate the Net Present Value of each project. (Round off amounts to the nearest Rand.) (6) 4.4 Calculate the Intemal Rate of Return for Project B. (4) INFORMATION The following information relates to two capital investment projects currently being considered by Enviro Limited, a recycling company Project A Project B Initial cost R720 000 R600 000 Expected useful life 5 years 4 years Scrap value R50 000 Nil Depreciation R134 000 pa R150 000 p.a. Expected net cash inflows R R 160 000 165 000 175 000 165 000 210 000 165 000 year 215 000 165 000 180 000 165 000 The company's cost of capital is 12% 1" year 20 year 3 year 4 5 year