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Note: Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. REQUIRED Study the information given below

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Note: Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. REQUIRED Study the information given below and answer the following questions: 5.1 Calculate the Payback Period (expressed in years, months and days). (3 marks) 5.2 Calculate the Accounting Rate of Return on average investment (expressed to two decimal places). (5 marks) 5.3 Identify TWO (2) reasons why Umdloti Limited should not use the accounting rate of return to evaluate capital investments. (2 marks) 5.4 Calculate the Net Present Value. (4 marks) 5.5 Calculate the Internal Rate of Return (expressed to two decimal places) if the net cash flows are R320 000 per year for five years. Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation. (6 marks) INFORMATION Umdloti Limited intends purchasing a new machine and the following details relate to this machine. Ignore taxes. I Imdlnti I imited intand_

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