SECTION C:

TASK $5$

MARKS

$15$

Randburg Pty Ltd has used Payback period, Internal Rate return and NPV in the past to appraise project investments and this year they are planning to use Average Accounting Rate of Return $($AAR$)$ as it is deemed to be linked to concepts used in the Statement of Profit or loss. Below is the proposed Project of Randburg for the year $2023.$

Page $3$ of $5$

$\backslash$table$[[\backslash$table$[[$Cost of the Project the$],[$Project :$],[$R $40000]],\backslash$table$[[$Residual Value of the$],[$Project :$],[0000]],\backslash$table$[[$Useful Years $=4$ years.$],[$Depreciation : Straight$],[$Line$]]],[$Year$,0,-40000],[$Year$,1,20000],[$Year$,2,16000],[$Year$,3,28000],[$Year$,4,12000]]$

Required:

$5\mathrm{.}1$ Calculate the Average Accounting Rate for Thembeka Investment project of $2023$

$(15)$