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Question 4 (a) A extract of two projects, A and B, is provided below Initial capital outlay R 10000 R 10000 Project lifecycle in years
Question 4 (a) A extract of two projects, A and B, is provided below Initial capital outlay R 10000 R 10000 Project lifecycle in years 4 Straight line method of depreciation Estimated future cash flow from operations Project AProject B Year 2 000 3 000 5 000 8 000 2 000 20 000 1 000 2 000 7 000 8 000 2 4 18 000 Required: Calculate the accounting (RONA) rate of return (b) In (a) above, you calculated the accounting rate of return Name and describe the other methods of investment appraisal that you will find in practice
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