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please answer Question 5.1 ; 5.2; 5.3; 5.4; 5.5 using appendices 1 and 2 where applicable - infoamtion provoded. after QUESTION 5. REQUIRED Study the

please answer Question 5.1 ; 5.2; 5.3; 5.4; 5.5 using appendices 1 and 2 where applicable - infoamtion provoded. image text in transcribed
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after QUESTION 5. REQUIRED Study the information given below and answer the following questions: 5.1 Calculate the Payback Period of Project A (expressed in years, months and days). 5.2 Calculate the Accounting Rate of Retum on average investment of Project A (expressed to two decimal places). ( 3 marks) 5.3 Calculate the Benefit Cost Ratio of both projects (expressed to two decimal places). ( 4 marks) 5.4 Refer to yours answers in question 5.3. Which project should be chosen? Why? ( 7 marks) 5.5 Calculate the Intemal Rate of Retum of Project B (expressed to two decimal places). Your ( 1 mark) answer must include two net present value calculations (using consecutive rates/percentages) and interpolation. INFORMATION (5 marks) The following information relates to two capital expenditure projects. Because of capital rationing, only one project can be chosen. The company estimates that its cost of capital is 12%, Ignore taxes. APPENDIX 1 Present value of 1R1: PVFA (k,m)= (1+k)11(1+k)n1 APPENDIX 2 Present value of a regular annuity of R1 per period for a periods: PVFA (k,n)= i=1n(1+k)21

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