QUESTION ONE Jayjee Ltd are looking to invest in new property which would serve as their new headquarters in Umanzimtoti. The following information has been extracted from the reports relating to the project: Investment R2 000 000 R534 000 5 years 14% Average annual profit Life span Minimum required rate of return Net Cash flow's: 1st year 2nd year 3rd year 4th year 5th year Required: 1.1 1.2 1.3 1.4 A M R200 000 R450 000 R600 000 R620 000 R800 000 Calculate the accounting rate of return (Express the answer to two decimal places). Calculate the payback period (Answer in years, months and days). Calculate the net present value. (Round off amounts to the nearest Rand). Would the project be acceptable at a cost of capital of 11%? Motivate your answer with an appropriate calculation. (7) 4. f10 insert (5) (5) [25] (8) Very humid

QUESTION ONE [25] Jayjee Ltd are looking to invest in new property which would serve as their new headquarters in Umanzimtoti. The following information has been extracted from the reports relating to the project: Required: 1.1 Calculate the accounting rate of return (Express the answer to two decimal places) 12 Calculate the payback period (Answer in years, months and days). (5) 1.3 Calculate the net present value, (Round off amounts to the nearest Rand) (8) 1.4 Would the project be acceptable at a cost of capital of T1KP Motivate your answor with an appropriste caleulation (7)