The following information relates to two projects under consideration by CRMP Limited: Project X Project Y Initial cost R1 555 000 R1 550 000 Expected life 7 years 7 years Expected scrap value 0 0 Expected net cash flows: R R End of year 1 450 000 420 000 2 420 000 420 000 3 400 000 420 000 4 200 000 420 000 5 180 000 420 000 6 350 000 420 000 7 450 000 420 000 The company estimates that its cost of capital is 13%. REQUIRED Study the information provided below and answer the following questions: 2.1 Calculate the Payback Period of both projects (answers expressed in years, months and days.) Which project would you choose on the basis of payback period? Why? (7 Marks) 2.2 Calculate the Accounting Rate of Return for both projects (answer expressed to two decimal places). (6 Marks) 2.3 Calculate the Net Present Value for both projects. (Round off amounts to the nearest Rand.) (6 Marks) 2.4 Based on your calculations from 2.1 - 2.3, which project should CRMP Limited choose? Why? (2 Marks) 2.5 Explain the concept of the "Internal Rate of Return (IRR)" in the context of financial decision-making