QUESTION $5(20$ Marks$)$Note: Where discount factors are required use only the $4$ decimals present value tables that appear in the $$module guide.$5\mathrm{.}1$REQUIRED$$Use the information provided below to calculate the following:$5\mathrm{.}1\mathrm{.}1$ Payback Period $($expressed in years, months and days$)(3$ marks$)5\mathrm{.}1\mathrm{.}2$ Accounting Rate of Return on initial investment $($expressed to two decimal places$)(4$ marks$)5\mathrm{.}1\mathrm{.}3$ Internal Rate of Return $($expressed to two decimal places$).$ Your answer must include $$two NPV calculations $($using consecutive rates$/$percentages$)$ and interpolation. $(6$ marks$)$INFORMATION$$Gillette Manufacturers intends investing in a machine. The following details relate to this machine:$$Purchase price R$800000$Expected useful life $4$ years$$Scrap value R$40000$Minimum required rate of return $15\%$Expected net profit:$1$st year R$600002$nd year R$800003$rd year R$1100004$th year R$120000$Depreciation is calculated using the straight$-$line method. Ignore taxes.$5\mathrm{.}2$REQUIRED$$Study the information provided below and answer the following questions:$5\mathrm{.}2\mathrm{.}1$ Compute the Net Present Value of the project. $($Show the calculations of the present $$values as well as the net present value.$)(6$ marks$)5\mathrm{.}2\mathrm{.}2$ Should the new project be considered for acceptance? Why? $(1$ mark$)$INFORMATION$$Mabel Ltd is looking at the possibility of investing in a project. The project would cost R$1000000$ and it is $$expected to have a scrap value of R$200000.$ Working capital of R$100000$ would be required at the start of $$the project and it would be recovered at the end of the useful life of the project. It is estimated that the project $$would generate cash revenues of R$800000$ per year and the cash operating expenses would total R$420000$per year. The project is expected to have a useful life of five years. The cost of capital is $15\%.$ Ignore taxes.$$TOTAL: $100$ MARKS