Calculate the IRR

With respect to Question 2, there are two typing errors in the table. I sincerely apologise for not noticing them. The table should read as follows. I have highlighted the changes in red: Revenue Less: Cost of sales Gross profit Less: Operating expenses Admin & General expenses Finance cost Profit before tax Less: Income tax Profit for the year Rand 950 000 446 500 503 500 326 250 281 250 45 000 177 250 53 175 124 075 With respect to question 4, the question is correct. You need to calculate the overall IRR for each alternative. Required: 2.1. Apply the percentage-of-sales method to the statement of comprehensive income for 2020 to develop the pessimistic and optimistic pro-forma statuments of comprehensive income for 2021. Use the table format below to prepare your answer. Items 2020 % of sales Pessimistic Optimistic 2.2. (18) Explain why the percentage-of-sales method could result in an overstatement of profits for the pessimistic scenario and an understatement of profits for the optimistic scenario. With respect to Question 2, there are two typing errors in the table. I sincerely apologise for not noticing them. The table should read as follows. I have highlighted the changes in red: Revenue Less: Cost of sales Gross profit Less: Operating expenses Admin & General expenses Finance cost Profit before tax Less: Income tax Profit for the year Rand 950 000 446 500 503 500 326 250 281 250 45 000 177 250 53 175 124 075 With respect to question 4, the question is correct. You need to calculate the overall IRR for each alternative. Required: 2.1. Apply the percentage-of-sales method to the statement of comprehensive income for 2020 to develop the pessimistic and optimistic pro-forma statuments of comprehensive income for 2021. Use the table format below to prepare your answer. Items 2020 % of sales Pessimistic Optimistic 2.2. (18) Explain why the percentage-of-sales method could result in an overstatement of profits for the pessimistic scenario and an understatement of profits for the optimistic scenario