Prime Textiles is evaluating a new manufacturing project with the following forecasted details: Initial amount invested is R400,000 and expected residual value is R30,000.

Year	Cashflows	Discount factor
Year 1	R80,000	0.909
Year 2	R150,000	0.826
Year 3	R140,000	0.751
Year 4	R80,000	0.683
Year 5	R70,000	0.621

Assuming that the cost of capital for the company is 9%. The cash flows are after tax and depreciation is charged at R30,000 per year. Tax rate is 28%.

Required: 1.1 Calculate each of the following: 1.1.1 Accounting Rate of Return 1.1.2 Discounted Payback period