Denton Manufacturing is considering a project with these projections:

• Initial amount invested is R800,000 with an expected residual value of R70,000.

Year	Cashflows	Discount factor
Year 1	R130,000	0.909
Year 2	R150,000	0.826
Year 3	R160,000	0.751
Year 4	R110,000	0.683
Year 5	R120,000	0.621

Cost of capital is 11%. Depreciation is R60,000 per year. Tax rate is 29%.

Required:

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