QUESTION 5 (20 Marks) Note: Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. REQUIRED Study the information given below and answer the following questions: 5.1 Calculate the Payback Period of Project A (expressed in years, months and days). ( 3 marks) 5.2 Calculate the Accounting Rate of Return on average investment of Project A (expressed to two decimal places). ( 4 marks) 5.3 Calculate the Benefit Cost Ratio of both projects (expressed to two decimal places). ( 7 marks) 5.4 Refer to yours answers in question 5.3. Which project should be chosen? Why? (1 mark) 5.5 Calculate the Intemal Rate of Retum of Project B (expressed to two decimal places). Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation. ( 5 marks) INFORMATION The following information relates to two capital expenditure projects. Because of capital rationing, only one The company estimates that its cost of capital is 12%. Ignore taxes. TOTAL:100 END OF PAPER