Baker Ltd is evaluating a project with the following financial projections:

• Initial investment of R600,000 with an expected residual value of R50,000.

Year	Cashflows	Discount factor
Year 1	R110,000	0.909
Year 2	R130,000	0.826
Year 3	R170,000	0.751
Year 4	R90,000	0.683
Year 5	R100,000	0.621

Assuming a cost of capital of 9%. Cash flows are after tax with depreciation at R45,000 per year. Tax rate is 25%.

Required:

1. Calculate each of the following:
   • 1.2.1 Net Present Value (5)
   • 1.2.2 Internal Rate of Return (5)