an investment account at the bank each month. QUESTION 3 Note: Where applicable, use the present value tables that appear in the module guide. REQUIRED Study the information provided below and calculate the following: (20 Marks) 3.1 Payback Period of both projects (expressed in years, months and days). (6 marks) 3.2 Accounting Rate of Return (on average investment) of Project B (expressed to two decimal places). (4 marks) 3.3 Net Present Value of both projects. The answer must show the present values for each year followed by the calculation of the net present value. (6 marks) 3.4 Internal Rate of Return of Project B (expressed to two decimal places). The answer must include the calculation of two net present values (using consecutive rates/percentages) and interpolation. (4 marks) INFORMATION You are required to do an analysis of two proposed capital investment projects. Details of initial investments, scrap values and net cash flows are presented below. The company uses a discount rate of 15% when evaluating projects. Project A Project B Initial investment R600 000 R600 000 Scrap value (not included in the figures below) R20 000 0 Net cash flows: Year 1 Year 2 Year 3 Year 4 R310 000 R220 000 R220 000 R220 000 R190 000 R220 000 R180 000 R220 000 Note: The profit per year for Project B was R70 000. TOTAL: 60 MARKS