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Answer the questions from the information provided. Where applicable, use the present value tables that appear in the module guide. 3.1 REQUIRED Calculate the following
Answer the questions from the information provided. Where applicable, use the present value tables that appear in the module guide. 3.1 REQUIRED Calculate the following for both projects from the information provided below: 3.1.1 Payback Period (expressed in years, months and days) (5 marks) 3.1.2 Accounting Rate of Retum on average investment (expressed to two decimal places). (5 marks) INFORMATION Mentos Ltd had to choose between two projects, Alpha and Beta, for which the following profits and net cash inflows are forecast: Each project requires an investment of R300 000. Both projects have no salvage value. 3.2 REQUIRED Use the information provided below to calculate the following: 3.2.1 Beneft Cost Ratio (expressed to three decimal places) (5 marks) 3.2.2 Intemal Rate of Return (expressed to two decimal places), if the net cash inflows are R110 000 per year for five years. (5 marks) INFORMATION An investment in a project has the following net cash flows: Note: The minimum required rate of retum is 15%. The project has no salvage value. Answer the questions from the information provided. Where applicable, use the present value tables that appear in the module guide. 3.1 REQUIRED Calculate the following for both projects from the information provided below: 3.1.1 Payback Period (expressed in years, months and days) (5 marks) 3.1.2 Accounting Rate of Retum on average investment (expressed to two decimal places). (5 marks) INFORMATION Mentos Ltd had to choose between two projects, Alpha and Beta, for which the following profits and net cash inflows are forecast: Each project requires an investment of R300 000. Both projects have no salvage value. 3.2 REQUIRED Use the information provided below to calculate the following: 3.2.1 Beneft Cost Ratio (expressed to three decimal places) (5 marks) 3.2.2 Intemal Rate of Return (expressed to two decimal places), if the net cash inflows are R110 000 per year for five years. (5 marks) INFORMATION An investment in a project has the following net cash flows: Note: The minimum required rate of retum is 15%. The project has no salvage value
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