\fQUESTION TWO Extracts of the Statement of Comprehensive income, Statement of Financial Position and other financial information for Spar Limited appear below. INFORMATION Spar Limited Statement of comprehensive income for the year ended 31 December 2022 R Sales 803 750 Cost of sales (676 500) Gross profit 127 250 Operating expenses (92 250) Operating profit 35 000 Interest expense (12 250) Profit before tax 22 750 Income tax (9 100) Profit after tax 13 650 Statement of Financial Position as at 31 December 2022\fQUESTION THREE 3.1 Your parents set up a trusttund for you 15 years ago that is now worth R32 1136,51. It the fund {5 marks] earned 5% per year, hoylr much did your parents invest? 3.2 Suppose you are offered an investment that will allo1l'lr you to double your money in 3- years. 1l"'oli {T marks] have Fttl} son to invest. What is the implied rate of interest? 3.3 Suppose you have a 1-year old daughter and you Irant to provide R81 11111] in 19 years towards her [T marks] college education. You ourrently have R2 D111] to invest. 'Ii'Ii'hat interest rate must you earn to have the R81 Ultl when you need it? 3.4 Suppose you want to buy a neiilr house. You currently have R15 Hill} and you gure you need to [E marks] have a 111% doom payment plus an additional 5% of the loan amount in olosing oosts. If the type of house you want costs about R151} Dill) and you can earn 8.1% per year, hour long will it be before you have enough money for the down payment and closing costs? QUESTION FOUR INFORMATION The management of SARB Limited must choose between two projects to expand their business operations. The two projects are called Project FIC and Project PA. Each project requires an initial investment of R250 000. No scrap values are expected. You have been presented with the following information: PROJECT FIC Project FIC has net cash inflows of R63000 for each of the five years of the projects lifespan. PROJECT PA Project PA is a five-year project with annual profit of R8000, R18000, R12000, R20000 and R7000 for years one to five respectively. The required rate of return is 15%. Depreciation is calculated using the straight-line method. REQUIRED Use the information provided above to calculate the following: 4.1 Payback Period of Project PA (answer expressed in years, months and days). (4 marks) 4.2 Net Present Value of Project PA. (Round off amounts to the nearest Rand.) (5 marks) 4.3 Accounting Rate of Return of Project PA (answer rounded off to 2 decimal places). (5 marks) 4.4 Discuss five advantages of the Accounting Rate of Return (5 marks) 4.5 Internal Rate of Return of Project FIC (answer rounded off to 2 decimal places). (6 marks)