Sony Ltd is considering investing in a new gaming console project with the following forecasted details: Initial amount invested is R1,800,000 and expected residual value is R130,000.

Year	Cashflows	Discount factor
Year 1	R450,000	0.909
Year 2	R460,000	0.826
Year 3	R470,000	0.751
Year 4	R480,000	0.683
Year 5	R490,000	0.621

Assuming that the cost of capital for the company is 9%. The cash flows are after tax and depreciation is charged at R130,000 per year. Tax rate is 27%.

Required:

1. Calculate each of the following: 1.1.1. Accounting Rate of Return (5) 1.1.2. Net Present Value (NPV) (10)