Microsoft Ltd is considering investing in a new cloud infrastructure project with the following forecasted details: Initial amount invested is R800,000 and expected residual value is R70,000.

Year	Cashflows	Discount factor
Year 1	R200,000	0.909
Year 2	R210,000	0.826
Year 3	R220,000	0.751
Year 4	R230,000	0.683
Year 5	R240,000	0.621

Assuming that the cost of capital for the company is 11%. The cash flows are after tax and depreciation is charged at R80,000 per year. Tax rate is 26%.

Required:

Calculate each of the following: 1.1.1. Internal Rate of Return (IRR) (10) 1.1.2. Payback period (5)