Bright Future Innovations is assessing an investment project with these details:

• Initial investment is R400,000 and the residual value is R25,000.

Year	Cashflows	Discount factor
Year 1	R85,000	0.909
Year 2	R105,000	0.826
Year 3	R115,000	0.751
Year 4	R75,000	0.683
Year 5	R55,000	0.621

The cost of capital is 10%. The cash flows are after tax, with a depreciation charge of R20,000 annually. The tax rate is 28%.

Required:

1. Calculate each of the following: 1.1 Accounting Rate of Return 1.2 Payback period 1.3 Net Present Value (NPV) 1.4 Profitability Index (PI)