QuESTION 5 (2) uakes) Note: Where discount factors are required, use only the present value tables (fippendix 1 and 2 ) that appear after the formula sheet. REQURED Sidy the intornation given below and arswer the following questions 51 Determine she Met Present Values of the who incestrent allethatives. Irow the (3) marks) (1) mem 5.3 Caloulate the Accouning Rale of Retum on average investment of Opton 2 lexpressed in two derimal placest. (5 mates) answer must include two net present value calculations fusing conseculise ratesiparrentages) and interpolation. (5 marks) WFORUATION investgatingtwo ootions. years. The contract requires the firm to pay the cty R2000000 cash at the beginno A once of pay mant of R390000 is also required at the beginning for transportation and instaliation. The frrt expects cash Option 2 is to operste a printing shop in a busy shopping mall. This oplion would require the curnotry by spend 87700000 for prining eculpment that has an estimated useful life of four years with a R400000 to be Ri 700000 per year. END OF PAPER APPENDIX 1: PRESENT VALUE OF R1 APPENDIX 2 : PRESENT VALUE OF A REGULAR ANNUITY OF R1 PER PERIOD FOR N PERIOOS \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline inds & & 246 & & 45 & 38 & As & T6 & x & Q8. & & 11% & 125 & lits & 10. & 15% & & & & In & \\ \hline 8 & 6sen1 & & & avolis & 0.64 & gads4 & 0+346 & & 00174 & & a wron & & asks & axty & a wast & cossin2 & a 24 & a 84 & sian: & \\ \hline E & a sing & 1 seth & & & & t arit & 1 sibe & 13NI3 & 17501 & 17163 & 17135 & I even & linal & 1 1.6? & & & x2+x2 & 40 & & \\ \hline 3 & soule & 2810 & & & 2724 & 286 & & & 25111 & 2.464 & 24417 & 24018 & 21612 & 23415 & 213 & 2.69 & & & & \\ \hline 4 & & & 3737 & & 34m & & 3.372 & 3121 & & 11000 & 31044 & 30173 & 2+143 & 291B & & 27sin & & & =8 & \\ \hline 3 & & 47136 & 457 & atsis & 4505 & & 41002 & 3.0027 & 3.897 & & 10059 & 1.604 & 3.412 & & & & 310333 & 3 & 20 & \\ \hline$ & & 3sec4 & selp? & 3:431 & 50% & 40173 & 47005 & 46320 & 44850 & & & & & & x=4 & 7+4x7 & & & & \\ \hline 3 & & 0.420 & 63203 & 6021 & 5704 & & 3.1503 & 5064 & 501304 & 4.85644.3563 & 4712242306 & 4561841114 & 442583505 & & 4 rod & & & & 31x & \\ \hline 8 & & & 2019y & & 6.4632 & & 59713 & 5,7406 & 5948 & 5.1349 & 51463 & 49630 & 4. 7988 & 4.5394 & 44873 & & 437 & & & \\ \hline$ & 8560 & & & & 71078 & 6317 & 65152 & 6369 & & 57500 & 5+30 & 5322 & 7 & & 47 is & 4300 & & & & 4 \\ \hline 80 & 84713 & 8036 & 85202 & & 77217 & 7301 & 30236 & 6.7101 & 64177 & 81448 & 55y2 & 5.640 & & 5.4164 & 50128 & 4.1182 & 4tids & & & 4 \\ \hline & & & & & & & & & & & & & & & & & & & & \\ \hline 18 & 10302 & Q7ens & & sines & 8,5004 & & 74987 & 7.1300 & 6052 & 64951 & b2ons & 50277 & 5600 & 5457 & 57127 & Sises & & & 4+2x2 & as \\ \hline 1.2. & & 105753 & 9824 & 93551 & 3.063 & 8338 & 79427 & 35461 & 31(x)7 & 6.8137 & 64024 & 81944 & 5.4176 & 5.sen3 & & 3x2 & & & & 26 \\ \hline is & 121337 & 113454 & 10+35 & 9305 & 9395 & x527 & 8.3577 & 70018 & 34800 & & 6. 1409 & 6.436 & 6.1218 & 5824 & 3501 & & 5.1183 & & 4742 & \\ \hline 14 & 13cos3 & 123062 & 112961 & 105631 & 85000 & 92460 & 87455 & 8234 ? & 7.7562 & 2,36? & 6418 & 6.622 & a 1005 & 60001 & 5.7265 & 32005 & & sais? & & \\ \hline 15 & 138651 & 82 s.95 & 14.379 & 11. IIst & 10.5797 & 97122 & 91074 & 83503 & & 2001 & & 0x100 & a. 4b24 & & 384 & 25784 & & & & ant \\ \hline & & & & & & & & & & & & & & & & & & & & \\ \hline If & 147129 & 135777 & 12 Qet1 & 11.6523 & 1037x & 101059 & 94466 & x514 & 83136 & 78257 & 7372 & 69740 & a catisy & & & 5 Gones. & 3408 & & & 25 \\ \hline 1? & & 14.2919 & 131061 & 121057 & 112741 & 104773 & 97632 & 9 12le & 8436 & x0216 & & 9114 & B 7201 & & 3(422 & 3+4 & & 32 & ase & 43 \\ \hline 18 & 16.393 & 14920 & 13535 & 126093 & & 10276 & 100591 & 93719 & 7350 & $2014 & 73010 & 72493 & & 6+57 & & 581x & 3618 & & & 4+12 \\ \hline 8 & 17360 & 15.755 & 148236 & 131339 & 130553 & II.1581 & 103356 & & 8.0501 & x 36ry & 2103 & 73658 & ovise & sesse & A 190: & & & sioes & 3=3, & 44 \\ \hline 20 & & 1805514 & 14735 & 135903 & 124022 & 11+409 & 10. 5949 & 98x & & 83136 & 39013 & 7+604 & 7024x & & & & sats & & & aktore \\ \hline & & & & & & & & & & & & & & & & & & & & \\ \hline 25 & 22 2812 & 365235 & 178131 & 15.421 & 140939 & 127814 & 116536 & 106748 & 9226 & vor7e & 84217 & 28431 & & & & sec3 & & \begin{tabular}{l} 5400 \\ 38x \end{tabular} & & 48 \\ \hline 31) & 33se47 & 22 sotes & 19.6004 & 172920 & 153725 & 13.7643 & 12+000 & 112578 & 10.2737 & 44364 & souis & & 3405? & praes) & sined & & & \begin{tabular}{l} 30s \\ x+20 \end{tabular} & & \\ \hline 40 & 32347 & & 23114s & 19792x & 13,3391 & 150463 & 133317 & 1192+6 & 107574 & 97791 & 8.0511 & & 7 ask & & aodis & & \begin{tabular}{l} xy2+3 \\ 584 \end{tabular} & \begin{tabular}{l} x+20 \\ x+6 \end{tabular} & & \\ \hline 50. & 301061 & 31.4236 & 253290 & 21.422 & 182554 & 157614 & & 122114 & 10m17 & velis & & 8 tous & Fard? & & apow & & 3x3x+14 & 4 & & \\ \hline 60 & & & 219756 & 225235 & 189298 & 161614 & 14.0092 & 123766 & If eako & 00672 & & & & ifate: & sen81 & axas & & & & \\ \hline \end{tabular}