Epsilon Ltd Details:

• Initial amount invested is R800,000 and expected residual value is R60,000.
• Cashflows and discount factors:

Year	Cashflows	Discount Factor
Year 1	R130,000	0.909
Year 2	R200,000	0.826
Year 3	R170,000	0.751
Year 4	R120,000	0.683
Year 5	R100,000	0.621

• Cost of capital: 13%
• Depreciation: R60,000 per year
• Tax rate: 30%

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)