Greenleaf Manufacturing Ltd is considering an investment project with the following projected details:

• Initial investment is R600,000 and expected residual value is R50,000.

Year	Cashflows	Discount factor
Year 1	R90,000	0.909
Year 2	R110,000	0.826
Year 3	R130,000	0.751
Year 4	R70,000	0.683
Year 5	R40,000	0.621

The cost of capital is 12%. The cash flows are post-tax, with annual depreciation at R25,000. The tax rate is 25%.

Required:

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)