Question: REQUIRED Study the information given below and answer the following questions. Where applicable, use the present value tables that appear atter QUESTION 5. 5.1 Calculate

REQUIRED Study the information given below and answer the following questions. Where applicable, use the present value tables that appear atter QUESTION 5. 5.1 Calculate the Payback Period of Project B (expressed in years, months and days). (3 marks) 5.2 Calculate the Accounting Rate of Return (on average investment) of Project B (expressed to two decimal places). (5 marks) 5.3 Calculate the Net Present Value of both projects. (6 marks) 5.4 Refer to your answers in question 5.3 and state which project should be chosen. Give a reason for your answer. (1 mark) 5.5 Calculate the Internal Rate of Return of Project A (expressed to two decimal places) using interpolation. (5 marks) INFORMATION Two projects are being evaluated for possible investment by Umbio Ltd. Information applicable to the two projects is as follows: APPENDOX 2: PRESENT VALUE OF A REGULAR ANNUITY OF R1 PER PERIOD FOR N PERIOOS
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
