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