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 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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