**PLEASE ANSWER ALL SUB-QUESTIONS AND EXPLAIN STEP BY STEP, PLEASE INCLUDE FORMULAE IN CORRECT FORMAT NOT COMPUTED VERSIONS, PLEASE INCLUDE NOMENCLATURE FOR ALL FORMULAE USED. THANK YOU FOR THE ASSISTANCE! ** PLEASE ANSWER THE ENTIRE QUESTION UNTIL THE END**

An investment has the following cash flows: Year Cash Flow 0 (R 60 000) R10 000 1 2 R12 000 3 R28 000 4 R20 000 5 R30 000 (5) (11) 1.2 Required: 1.1 Calculate the Payback period. Calculate Net present value (NPV) at 12% cost of capital. 1.3 Explain whether or not the investment should be accepted. Provide reasons for your decision. 1.4 Evaluate the payback period method as a technique for investment appraisal. (3) (6) NB: Use the following discount factors for the calculation of the NPV: Year Discount factor 1 0.893 2 0.797 3 0.712 4 0.636 5 0.567