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KINDLY ASSIST ME WITH THE ATTACHED QUESTION. QUESTION 4 4.1 REQUIRED (25) Use the information provided below to determine whether the company should consider accepting

KINDLY ASSIST ME WITH THE ATTACHED QUESTION.

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QUESTION 4 4.1 REQUIRED (25) Use the information provided below to determine whether the company should consider accepting the investment opportunity. Motivate your answer by calculating the Net Present Value. (7) INFORMATION Zipline Limited is a manufacturing company and its management is presently appraising investing R1 400 000 in new Annual cash sales from the project are forecast at 5 000 units at a selling price of R128 per unit. Cash expenses are expected to amount to R60 per unit. The company's cost of capital is 16%. 4.2 REQUIRED Use the information provided below to answer the following questions: 4.2.1 Calculate the Payback Period (in years). 4.2.2 Calculate the Internal Rate of Return (answer expressed to two decimal places). (3) (5) (1) 4.2.3 Based on the Internal Rate of Return, should Siyakha Limited consider investing in the project? Why? 4.2.4 Calculate the Return on Investment, if the project is expected to have a scrap value of R100 000 (answer expressed to two decimal places). 4.2.5 Explain TWO (2) advantages of using Internal Rate of Return as a technique to evaluate investments in projects. (5) (4) INFORMATION Siyakha Limited is investigating an opportunity to invest R1 500 000 in a project. The project is expected to generate net cash flows of R480 000 per annum for five years. The expected scrap value is zero. The company uses the straight-line method of depreciation. The cost of capital is 15%

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