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QUESTION TWO (20 Marks) (6 marks) REQUIRED Study the information provided below and answer the following questions: 2.1 Calculate the Payback Period of both projects
QUESTION TWO (20 Marks) (6 marks) REQUIRED Study the information provided below and answer the following questions: 2.1 Calculate the Payback Period of both projects (answers expressed in years, months and days.) Which project would you choose on the basis of payback period? Why? 2.2 Calculate the Accounting Rate of Return for both projects (answer expressed to two decimal places). Calculate the Net Present Value for both projects. (Round off amounts to the nearest Rand.) 2.4 Based on your calculations from 2.1 -2.3, which project should Rothmans Limited choose? Why?. (6 marks) 2.3 (6 marks) (2 marks) INFORMATION The following information relates to two projects under consideration by Rothmans Limited: QUESTION TWO (20 Marks) (6 marks) REQUIRED Study the information provided below and answer the following questions: 2.1 Calculate the Payback Period of both projects (answers expressed in years, months and days.) Which project would you choose on the basis of payback period? Why? 2.2 Calculate the Accounting Rate of Return for both projects (answer expressed to two decimal places). Calculate the Net Present Value for both projects. (Round off amounts to the nearest Rand.) 2.4 Based on your calculations from 2.1 -2.3, which project should Rothmans Limited choose? Why?. (6 marks) 2.3 (6 marks) (2 marks) INFORMATION The following information relates to two projects under consideration by Rothmans Limited
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