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4.1 REQUIRED Calculate the following from the information given below: Payback Period (expressed in years). Return on investment (expressed to two decimal places). INFORMATION Tridev
4.1 REQUIRED Calculate the following from the information given below: Payback Period (expressed in years). Return on investment (expressed to two decimal places). INFORMATION Tridev Limited intends investing in a new project. The following details relate to one of the projects it can choose from: Initial cost Expected useful life Scrap value Depreciation per year Minimum required rate of return Expected net cash flows: End of Year 1 Year 2 Year 3 Year 4 R400 000 4 years 0 R100 000 14% R 110 000 120 000 125 000 160 000 4.2 REQUIRED Study the information given below and answer the following questions: Calculate the project's Internal Rate of Return (answer expressed to two decimal places). Should the company consider investing in the project? Why
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