INFORMATION The following information relates to two capital expenditure projects. Because of capital rationing, only one project can be accepted. Project A Initial cost Expected life Scrap value (not included in the figures below) Expected net cash inflows: R End of year: 1 260 000 280 000 w I 360 000 300 000 w R1 000 000 5 years R20 000 240 000 Project B R1000 000 0 R 290 000 290 000 290 000 290 000 290 000 5 years The company estimates that its cost of capital is 12%. REQUIRED Use the information provided below to calculate the following: 2 Payback Period of Project B (answer expressed in years, months and days). 2.2 Return on investment of Project A (answer expressed to two decimal places). 2.3 Net Present Value of both projects. 2.4 Internal Rate of Return of Project B (answer expressed to two decimal places). (4) (5) (10) (6)