ACCOUNTANCY AND FINANCE ASSIGNMENT 3 SUBMISSION DATE: - TBA BUSINESS FINANCE (Capital Investment Appraisal) Zenith and Super have the following expected cash flows: Zenith Super Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 (20,000) 4,000 6,000 6,000 7,000 6,000 (25,000) 8,000 6,000 5,000 6,000 8,000 Additional Expectations: Each project will have a life of 5 years. At the end of the fifth year there will be no scrap/residual value. Capital expenditure for both projects will be incurred immediately. Depreciation is calculated on a straight-line basis. Taxation is to be ignored. The cost of capital is 12%. REQUIRED: (a) Calculate for each project: 1. Payback period; 2. Convert cash flows to profit flows; 3. Accounting rate of return (ARR); 4. Net present value (NPV) if the cost of capital is 12%; 5. Net present value if the cost of capital is 20%; and 6. Internal rate of return (IRR). (b) Comment on each of the above