INFORMATION The management of Mastiff Enterprises has a choice between two projects viz. Project Cos and Project Tan, each of which requires an initial investment of R2 500 000. The following information is presented to you: PROJECT TAN Net Profit Year 1 - 80 000 year 2 -180 000 Year 3- 120 000 Year 4 -220 000 Year 5- 50 000.

A scrap value of R100 000 is expected for Project Tan The required rate of return is 15%.

Depreciation is calculated using the straight-line method. Use the information provided above to calculate the following. Where applicable, use the present value tables provided in QUESTION 5. 5.1 Payback Period of Project Tan (expressed in years, months and days). (3 marks)