Innovatech Ltd is considering a new project with the following forecasted details:

• Initial investment is R550,000 and the expected residual value is R35,000.

Year	Cashflows	Discount factor
Year 1	R90,000	0.909
Year 2	R130,000	0.826
Year 3	R120,000	0.751
Year 4	R80,000	0.683
Year 5	R60,000	0.621

The cost of capital is 12%. The cash flows are post-tax, with annual depreciation at R25,000. The tax rate is 27%.

Required:

Calculate each of the following: 1.1 Accounting Rate of Return 1.2 Payback period 1.3 Net Present Value (NPV) 1.4 Modified Internal Rate of Return (MIRR)