QUESTION $2$

$(25$ MARKS$)$

REQUIRED:

Calculate the following from the information given below:

$2\mathrm{.}1\mathrm{.}1$ Accounting Rate of Return $($on average investment$)$

$(5$ Marks$)$

$2\mathrm{.}1\mathrm{.}2$ Calculate the Internal Rate of return. Use interpolation to arrive at your answer.

$(10$ Marks$)$

INFORMATION

Conquesta Limited is considering the purchase of Machine $x,$ details of which are provided below:

$\backslash$table$[[,$Year,R$],[$Initial investment,$0,(750000)$