Apex Logistics is evaluating a new logistics project with the following forecasted details: Initial amount invested is R500,000 and expected residual value is R25,000.

Year	Cashflows	Discount factor
Year 1	R100,000	0.909
Year 2	R180,000	0.826
Year 3	R170,000	0.751
Year 4	R100,000	0.683
Year 5	R90,000	0.621

Assuming that the cost of capital for the company is 12%. The cash flows are after tax and depreciation is charged at R35,000 per year. Tax rate is 26%.

Required: 1.1 Calculate each of the following: 1.1.1 Accounting Rate of Return 1.1.2 Payback period