xam.pdf - Adobe Acrobat Reader DC Edit View Window Help me Z Tools 2 W Document End of year Type here to search S 5 6 7 The company estimates that its cost of capital is 13%. # Alt 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? 2.2 Calculate the Accounting Rate of Return for both projects (answer expressed to two decimal places) 2.3 Calculate the Net Present Value for both projects. (Round off amounts to the nearest Rand) 2.4 Based on your calculations from 21-23, which project should CRMP Limited choose? Why? 2.5 Explain the concept of the "Internal Rate of Return (IRR)" in the context of financial decision-making. Describe the significance of IRR when evaluating investment projects 3 X 1 2 E $ 4 C R -- LL Q F % 5 V T ( 6 G Y 3 / 8 B TUE 0025453 LONMIN 87 & H U N * 8 00 J ( M 9 450 000 420 000 400 000 200 000