Question: QUESTION 5 (20 Marks) Note: Where applicable, use the present value tables provided in APFENDICES 1 and 2 that appear after QUESTION 5 PEQURED Study
QUESTION 5 (20 Marks) Note: Where applicable, use the present value tables provided in APFENDICES 1 and 2 that appear after QUESTION 5 PEQURED Study the informaten gven below and answer the following questors: 5.1 Culculate the Paybeck Period of Prejed A (expresend h yeart, moniths and days) (3 marks) 5.2 Calculate the Acoounting Rate of Retum on averige investhent of Preject A (expreschd to two decinal plicesel (4 maks) 5.3 Calculahe the Buneft Cout Ratio of both projects (expressed to two decinal placesi. (7 marks) 5.4 Refler to yours answers in question 53 . Which project should be chosen? Wry? (1 mak) 55 Caculate the ifthmal Rule of Retum of Proiect 8 lexpessed to two decinal plvoesl Your answer mut includo two net present value cilculations fusing corsective matespercentagesl and inteppotation. (5 masis) INFORMATION The following information relates to two caplal expendise projects. Because cl capital rationing only one propect can be chosen The company estimates that its cost of cagital is 12% lgnove tuxes. TOTAL: 100 END OF PAPER
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