Pioneer Systems Ltd is planning to invest in a new project with the following financial details:

• Initial investment is R520,000 and the residual value is R35,000.

Year	Cashflows	Discount factor
Year 1	R90,000	0.909
Year 2	R140,000	0.826
Year 3	R130,000	0.751
Year 4	R75,000	0.683
Year 5	R60,000	0.621

The company’s cost of capital is 10%. The cash flows are after tax, with annual depreciation of R30,000. The tax rate is 28%.

Required:

1. Calculate each of the following: 1.1 Accounting Rate of Return 1.2 Payback period 1.3 Net Present Value (NPV) 1.4 Profitability Index (PI)