2.1. 2.2 Evaluate the Internal Rate of Return (IRR) as an investment appraisal technique. (3) Xedr Investments Ltd have just made an investment of R550 000 in new equipment. Additional information: . Expected useful life Salvage value . Cost of Capital Tax rate 5 years (straight line depreciation) 50 000 10% after tax 30% Years 1 234 5 Required: Cash flows 220 000 200 000 120 000 110 000 50 000 2.2.1 Calculate the payback period (4) and the accounting rate of return (4). 2.2.2 Xedr Investments Ltd requires a payback period of no more than 3 years and an accounting rate of return of at least 30%. On the basis of these criteria, should this project be accepted? Justify your answer. (5) 2.2.3 The payback period method makes a crucial omission in its calculation, namely the time value of money. Complete the above computation using a method that accounts for the time value of money. On the basis of this calculation, should the project be accepted? Justify your answer. (Note: answers can be presented without the use of a table) (9)