QUESTION 4 4.1 REQUIRED Calculate the following based on the information provided below. (Ignore taxes.) 4.1.1 Payback Period (answer expressed in years) 4.1.2 Return on Investment (answer expressed to two decimal places) 4.1.3 Net Present Value. INFORMATION Platinum Limited intends investing in a new project. The following details relate to one of the projects it can choose from: Initial cost Expected useful life Scrap value (not included in the figures below) Minimum required rate of return R800 000 4 years R20 000 14% Expected net cash flows and net profit: End of Year 1 Year 2 Year 3 4.2 Year 4 REQUIRED Net cash flows Net profit R204 000 R9 000 R220 000 R25 000 R260 000 R65 000 R340 000 R145 000 Study the information given below and answer the following questions: 4.2.1 4.2.2 Calculate the project's Internal Rate of Return (answer expressed to two decimal places). Should the company consider investing in the project? Why? INFORMATION Demazin Limited is considering an investment in a project that costs R864 000 which is expected to result in net cash flows of R270 000 per year for five years. The company's cost of capital is 16%. Guidelines: All answers must be typed out and workings must be showing.