QUESTION TWO $[25]2\mathrm{.}1.$ Explain the rationale behind the Internal rate of return $($IRR$)(4)2\mathrm{.}2$ Malda Ltd have just made an investment of R$550000$ in a new delivery vehicle. This vehicle will be used for deliveries and generate revenues from such activities. Further details: $$ Expected useful life $5$ years $($straight line depreciation$)$ Salvage value $50000$ Cost of Capital $10\%$ after tax $$ Tax rate $30\%$ Year Cash flows $1220000220000031200004110000550000$ Required: $2\mathrm{.}2\mathrm{.}1$ Calculate the payback period and the accounting rate of return. $(8)2\mathrm{.}2\mathrm{.}2$ Malda Ltd requires a payback period of no more than $3$ years and a return of at least $30\%.$ Purely on the basis of these criteria, should this project be accepted. Explain. $(5)2\mathrm{.}2\mathrm{.}3$ The payback period method makes a crucial omission in the calculation, namely the time value of money. Complete the above computation using a method that accounts for the time value of money? On the basis of this calculation, should the project be accepted? Explain. $(8$