Question: SECTION A [100 MARKS] Answer ALL questions in this section. QUESTION 1 (25 MARKS) 1.1 Kamalani Holdings Ltd is evaluating a new capital investment project,

SECTION A [100 MARKS] Answer ALL questions in this section. QUESTION 1 (25 MARKS) 1.1 Kamalani Holdings Ltd is evaluating a new capital investment project, and has provided the following details: Initial Investment: R1,200,000 Estimated Salvage Value: R100,000 Estimated Net Profit after Tax: Year Net re tran 00 [5 Ras00] Depreciation is calculated on a straight-line basis over 5 years, considering the salvage value. The required rate of return is 12% per annum. REQUIRED: Calculate the following investment appraisal metrics: Be 1.1.2 1.1.3 1.14 Accounting Rate of Return (to two decimal places) (5 marks) Payback Period in years, months, and days. (3 marks) Net Present Value, rounded to the nearest rand (4 marks) Profitability Index, to two decimal places (1 mark)

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