Investec Plc is preparing its annual capital budget and is considering three projects, X, Y and Z. The following financial data relates to the projects. Y K'm K'm K'm Capital expenditure 800 900 700 Cash inflows Year 1 200 260 100 Year 2 240 260 220 Year 3 280 260 260 Year 4 240 260 300 Year 5* 200 300 200 NPV 78 110 96 Cash inflow in year 5 include K40m scrap value for each project. Invested uses 10% cost of capital to evaluate its investments. Required; a. Calculate the following i. Discounted payback period of all projects. (6 marks) i. Calculate the Internal Rate of Return of project Y and Z (10 marks II. Justify why the Payback Period and Accounting Rate of Return (ARR) methods are widely used in practice. (4 marks)