Question 5 (30 marks) Mr Shikongo was presented with the following investment opportunity for his SME enterprise. After-tax inflows of the project are as follows: 1 2 3 year 0 Cash flows (750 000) 250 000 200 000 270 000 260 000 150 000 N$ The following criteria are applied by Mr Shikongo's enterprise to assist in investment decision making: Capital investments are to be recovered within four years. A return above the cost of capital of 16% is required when discounted cash flows methods are employed Required: Calculate the following and indicate whether the project is acceptable according to these method: 5 marks a) Payback method 6 marks b) Discounted payback method 6 marks c) Net present value (NPV) Page 7 of 10 d) Internal rate of return (IRR) e) Modified internal rate of return (MIRR) f) Profitability index (PI) 12 marks 12 marks 3 marks