You recently accepted an assignment with Commitment Limited as a financial consultant. One of your first assignments is the analysis of two proposed capital investment projects. Details of initial investments, after$-$tax cash flows and average annual profits are represented below:

$\backslash$table$[[,$Year,After$-$tax Cash flows$],[,,$Project A$,$Project B$],[$Initial investments,,$($R$50000),($R$50000)],[$Cash flows,$1,$R$26200,$R$14200],[,2,$R$12200,$R$14200],[,,$R$12200,$R$14200],[$Average annual profits,$3,$R$5000,$R$14200]]$

$1\mathrm{.}1.$ Which project has a shorter payback period? Motivate your answer by doing the relevant calculations. $($Express answer in years, months, and days$)(12$ marks$)$

$1\mathrm{.}2.$ Calculate the accounting rate of return on average investment on project $B$ if it had a scrap value of $R4000$ at the end of year $4($answer to two decimal places$).$

$(4$ marks$)$

$1\mathrm{.}3.$Name two disadvantages of using a "payback period" as a technique to evaluate capital investment decisions.

$(4$ marks$)$