Future Vision Ltd is analyzing a potential investment project with these details:

• Initial investment of R700,000 and an expected residual value of R60,000.

Year	Cashflows	Discount factor
Year 1	R120,000	0.909
Year 2	R140,000	0.826
Year 3	R150,000	0.751
Year 4	R80,000	0.683
Year 5	R50,000	0.621

The company’s cost of capital is 10%. The cash flows are after tax, with annual depreciation of R35,000. The tax rate is 26%.

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)