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please help with answer ADBMW 1 Business Fin X file:///C:/Users/Mashudu/Desktop/BusinessFinancenotes/ADEMY.20.2015.206siness FinanceNew.pet.pdf D- QUESTIONS (20 Marka) Note: Where applicable, use the present value tables provided in

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ADBMW 1 Business Fin X file:///C:/Users/Mashudu/Desktop/BusinessFinancenotes/ADEMY.20.2015.206siness FinanceNew.pet.pdf D- QUESTIONS (20 Marka) Note: Where applicable, use the present value tables provided in APPENDICES 1 und 2 that appear after REQUIRED Use the information given below to calculate the following 51 Payback Pened of both projects (answers expressed in years and months) (4 marks) 5.2 Accounting Rate of Retum of Project A (answer expressed to two decimal places) (3 marks) 53 Net Present Value (NPV) of both projects (amounts rounded off to the nearest Rand) (6 marks) 54 Profitability Index of Project B (answer expressed to two decimal places) (2 marks) 55 Internal Rate of Return of Project B (answer expressed to two decimal places) (5 marks) INFORMATION Gentry Lid had to choose between these two projects Project A or Project B. for which the following net cash inflows have been forecasted Year 1 2 3 4 Project A R60 000 R160 000 R200 000 R360 000 Project B R172 000 R172 000 R172 000 R172 000 Project A requires an investment of R560 000 while project Project requires an investment of R500 000 The average annual proht of projects Project A and Project B are expected to be R$5000 and R47 000 respectively Both projects are expected to have no salvage value. The minimum required rate of return on these projesi ADBM Y 1 Business Fin X W/C/Users/Mashudu/Desktop/BusinessFinance%20notes/ADBM%204%201%20Business%20Finance%20New.prt.pdf 54 Frontability index of Project B (answer expressed 10 Two decimal places) 12 marsj 55 Internal Rate of Return of Project B (answer expressed to two decimal places) (5 marks) INFORMATION Gentry Ltd had to choose between these two projects, Project A or Project B. for which the following net cash inflows have been forecasted Year 1 2 3 Project A R60 000 R160 000 R200 000 R360 000 Project B R172 000 R172 000 R172 000 R172 000 4 Project A requires an investment of R560 000 while project Project requires an investment of R500 000 The average annual profit of projects Project A and Project are expected to be R55 000 and R47 000 respectively Both projects are expected to have no salvage value the minimum required rate of return on these projects is

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