QUESTION 5 (20 MARKS) 5.1 REQUIRED Use the information provided below to calculate the following. Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. 5.1.1 Payback Period (expressed in years, months and days) (3 marks) 5.1.2 Accounting Rate of Return, on average investment (expressed to two decimal places) (4 marks) 5.1.3 Internal Rate of Return (expressed to two decimal places) (6 marks) INFORMATION Redd Lid intends purchasing a machine. The following details relate to this machine: Purchase price R1 200 000 Expected useful life 4 years Minimum required rate of return 12% Scrap value RO Depreciation Straight-line method Net profit per year. 1 year R40 000 2nd year R100 000 3rd year R130 000 4th year R150 000 5.2 REQUIRED Use the information provided below to answer the following questions: 5.2.1 Calculate the Net Present Value. (6 marks) 5.2.2 Should the project be considered for acceptance? Why? (1 mark) INFORMATION Schroder Limited is looking at the possibility of investing in a new project. The project would cost R1 000 000, and its cash operating expenses would total R210 000 per year. On the benefit side, it is estimated that the new project would generate cash revenues of R470 000 per year. The project will have a useful life of five years and is expected to have a scrap value of R90 000. The cost of capital is 12%