QUESTION 3 REQUIRED Use the information provided below to calculate the following: 3.1 Payback period of Project B (answer expressed in years and months.) 3.2 Accounting Rate of Return on average Investment of both projects (answers expressed to two decimal places) 3.3 Net Present Value of Project A (amounts rounded off to the nearest rand). 3.4 Benefit Cost Ratio of Project B (answer expressed to three decimal places). 3.5 Internal Rate of Return of Project B (answer expressed to two decimal places). INFORMATION Your company has the option to invest in machinery in Project A or Project B but finance is only available to invest in one of them. You are given the following projected data: Net cash inflows Net profit Project A Project B Project A Project B R R R R Year 1 Year 2 Year 3 Year 4 Year 5 65 000 85 000 93 000 89 000 133 000 80 000 80 000 80 000 80 000 80 000 5 000 25 000 33 000 29 000 73 000 20 000 20 000 20 000 20 000 20 000 Additional information 1. The initial cost of machinery for each project is R300 000. 2. No scrap values are expected for the projects. 3. The discount rate to be used by the company is 12%