Question: Question 5. 1) Explain two types of mathematical tools to appraise capital investment decisions in business? Give examples. 15 Marks] II) Genesis Ltd. has 57,000

Question 5. 1) Explain two types of mathematical tools to appraise capital investment decisions in business? Give examples. 15 Marks] II) Genesis Ltd. has 57,000 to spend on capital investment projects. The company is currently evaluating two (2) projects for their future investment. Required rate of return is at 12%. Project A Project B Inflows () Outflows () Inflows () Outflows () 54,000 41,000 53,000 30,000 43,000 22,000 42,000 23,000 44,000 31,000 44,000 18,000 51,000 31,000 44,000 23,000 | Year 1 2 3 4 Use the above information to calculate and comment on the; a) Payback period [10 Marks b) IRR (Hint: Project A - between 5% to 10%; Project B - between 25% to 30%) [15 Marks
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