QUESTION 5 Answer the following questions based on the information provided 5.1 Accounting Rate of Return (on initial investment) of Project A (expressed to two decimal places) Net Present Value of Project C (with amounts expressed to the nearest Rand) Internal Rate of Return of Project B (expressed to two decimal places) USING INTERPOLATION INFORMATION The following information relates to three possible capital expenditure projects. Because of capital rationing, only one project can be accepted. Project A Project B Project C Initial cost R960 000 R1 060 000 R860 000 Expected useful life 5 years 5 years 5 years Expected scrap value R40 000 0 R60 000 Expected net profit: R R R End of year 1 204 000 100 000 52 000 2 152 000 100 000 116 000 3 128 000 100 000 128 000 5 104 000 100 000 140 000 40 000 100 000 80 000 The company estimates that its cost of capital is 15%. Depreciation is calculated using the straight-line method. Ignore taxes. Calculate the total production costs for April and May based on the production requirements for each month. INFORMATION Mandla Ltd manufactures a single product, Product A. The estimated sales volumes for three months of 2023 are as follows: Month April May June Units 14 000 20 000 16 000 Management's policy is to maintain a closing finished goods inventory each month at a level equal to 50% of the next month's budgeted sales. The production cost per unit of Product A is expected to be R121 for May 2023, 10% higher than the cost for April 2023.