Question 5 Use the information provided to answer the questions. Use the information provided below to calculate the following. Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5.5 5.1.1 Calculate the Payback Period of Project A (expressed in years, months and days). (3 marks) 5.1.2Calculate the Accounting Rate of Return (on average investment) of Project B (expressed to two decimal places). 5.1.3 Calculate the Net Present Value of each project (with amounts rounded off to the nearest Rand). ( 5.1.4. Use your answers from question 5.1.3 to recommend the project that should be chosen. Motivate your choice. INFORMATION Zeda Enterprises has the option to invest in machinery in projects A and B but finance is only available to invest in one of them. You are given the following projected data: Project A Project B Initial cost R300 000 R300 000 Scrap value R40 000 0 Depreciation per year R52 000 R60 000 Net profit Year 1 R20 000 Year 2 R30 000 Year 3 R50 000 Year 4 R60 000 Year 5 R10 000 Net cash flows Year 1 R90 000 Year 2 R90 000 Year 3 R90 000 Year 4 R90 000 Year 5 R90 000 Additional information The discount rate used by the company is 12%. APPENDIX 1: PRESENT VALUE OF R1 Use the information provided below to calculate the Internal Rate of Return (expressed to two decimal places) using interpolation. (5 marks) INFORMATION A machine with a purchase price of R1 200 000 is estimated to eliminate manual operations by R400 000 per year. The machine is expected to have a useful life of four years