5 (20 Marks) Note: Where applicable, refer to the present value tables (APPENDIX 1 and 2) that appear after QUESTION 5. REQUIRED Study the information given below and answer the following questions: | 5.1 Calculate the Payback Period of both projects. (Answers must be expressed in years, months and days.) (4 marks) 529 5.2 Calculate the Net Present Value project of both projects. (Round off amounts to the nearest Rand.) (6 marks) 5.3 5.4 Taking into account the time value of money, which project should be chosen? Why? Calculate the Accounting Rate of Return (on average investment) of Project A (answer expressed to two decimal places). (1 mark) (4 marks) 5.5 Calculate the Internal Rate of Return (IRR) of Project B (answer expressed to two decimal places). (5 marks) INFORMATION Details of the initial investments, net cash inflows and net profit of two projects are presented below: Net cash flows Net profit Year Project A R Project B R Project A Project B R R 0 (500 000) (500 000) 1 130 000 170 000 5 000 45 000 2 180 000 170 000 55 000 45 000 3 250 000 170 000 125 000 45 000 4 125 000 170 000 0 45 000 The required rate of return is 12%. No scrap values are expected for the projects