QUESTION 4 (25) 4.1 REQUIRED Use the information provided below to determine whether the company should consider accepting the investment opportunity. Motivate your answer by calculating the Net Present Value. (7) INFORMATION Zipline Limited is a manufacturing company and its management is presently appraising investing R1 400 000 in new project that is expected to have a useful life of eight years and a scrap value of R200 000. Annual cash sales from the project are forecast at 5 000 units at a selling price of R128 per unit. Cash expenses are expected to amount to R60 per unit. The company's cost of capital is 16%. 79 PROGRAMME HANDBOOK: JANUARY 2021 INTAKE MANCOSA: POSTGRADUATE DIPLOMA IN PROJECT MANAGEMENT 80 4.2 REQUIRED Use the information provided below to answer the following questions: 4.2.1 Calculate the Payback Period (in years). (3) 4.2.2 Calculate the Internal Rate of Return (answer expressed to two decimal places). (5) 4.2.3 Based on the Internal Rate of Return, should Siyakha Limited consider investing in the project? Why? (1) 4.2.4 Calculate the Return on Investment, if the project is expected to have a scrap value of R100 000 (answer expressed to two decimal places). (5) 4.2.5 Explain TWO (2) advantages of using Internal Rate of Return as a technique to evaluate investments in projects. (4) INFORMATION Siyakha Limited is investigating an opportunity to invest R1 500 000 in a project. The project is expected to generate net cash flows of R480 000 per annum for five years. The expected scrap value is zero. The company uses the straight-line method of depreciation. The cost of capital is 15%. . . Assessment format Your assignment should include a Table of Contents page and a bibliography. Text: Arial or Times New Roman (12); Spacing 12 lines. All text must be justified at each margin. Where applicable, use the formats and formulas from your study guide. Start each question on a new page. Number each solution according to the numbering in the assignment handbook. You may make use of a spreadsheet (e.g. Microsoft Excel) to assist you only with the construction of tables and formats. Solutions generated by software packages will not be marked. Where applicable, the relevant workings must be shown