STION 5 (20 Marks) Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear Her QUESTION 5 REQUIRED 5.3 Calculate the Payback period of Project F (answer expressed in years, months and days) (3 marks) Calculate the Accounting Rate of Return on average investment) of Project G (answer expressed to two decimal places). (5 marks) Calculate the Net Present Value of Project F (amounts rounded off to the nearest Rand). (4 marks) Explain how projects are chosen on the basis of net present value. (2 marks) Calculate the internal Rate of Return of Project G (answer expressed to two decimal places.) (5 marks) INFORMATION Goblin Limited has the option to invest in machinery in Projects F and G but finance is only available to invest in one of them. The following projected data is available: Project F Project G R 250 000 250 000 Initial cost Net cash inflows: Year 1 Year 2 Year 3 Year 4 Year 5 71000 75 000 85000 88 000 92 000 80 000 80 000 80 000 80 000 80 000 Additional information 2. Project F machinery will be disposed of at the end of year 5 with a scrap value of R20 000 (not included in the figures above). Project G machinery will be disposed of at the end of year 5 with a nil scrap value. Depreciation is calculated on a straight-line basis. The discount rate to be used by the company is 15% 4. END OF PAPER