Question: Study the information given below which was made available by Levis Limited and calculate the following: 2.1 Accounting Rate of Return on average investment of

 Study the information given below which was made available by Levis

Study the information given below which was made available by Levis Limited and calculate the following: 2.1 Accounting Rate of Return on average investment of Project A (answer expressed to two decimal places). (3 marks) 2.2 Net Present Value of Project A (amounts rounded off to the nearest Rand.) (3 marks) 2.3 Internal Rate of Return of Project B (answer expressed to two decimal places). (4 marks) INFORMATION The following information relates to two capital investment projects, under consideration by Levis Limited for 2021: Project A Project B Initial cost R800 000 R800 000 Expected useful life 5 years 5 years Scrap/Residual value (not included in the figures below) R80 000 0 Expected annual profits: End of: Year 1 140 000 105 000 R R Year 2 130 000 105 000 Year 3 120 000 105 000 Year 4 110 000 105 000 105 000 Year 5 100 000 The company estimates that its cost of capital is 15%. The straight-line method of depreciation is used

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