QUESTION5 (20 Marks) Answer the qubstons trom the informaton provided. 5.1 REQURED Calculate the following fom the informajon provided below. 5.1.1 Payback Period of Proiect Alpha (expressed in year, montss and days) (3 mishs) 5.12 Acoourting Rahe of Retum fon average investrent) of Project Beta (expressed bo two decimal places) (9) marks) 5.1.3 Net Prostnt Value of Project Bes (with anounts exgressed b the nearest Rand) (4 marks) 5.1.4 Intecnal Rute of Return (erpressed b two decinal places) of Project Agha, using interpolation. (4 mans) INFORMATION Irvestec Lis has a choice between purdasing mackinery for two projects va. Poipet Apha and Propect Beta. Project Agha is expectod to generate a net proft of R640000 per year for four years whils the net proft generated by Project Beta is expected b be Ris0 000 (year 1). Re90 000 (jear 2). R1 020000(year ) and Rt 050000 (year 4). Exch project requires an investnert of R5000000. Project Bea is exected t have a serap valus of R100 000 whist no scrap value is artcpoted for Projoct Apha. The strightine method of deprociation is used. The cost of capital is 12%, fonore tares. 5.2 REQURRED Use the infomason provided below to calculate the weichtad average cost of capital ferpressed to two decinal places). (6 marks) INFORMATION MVP Limiwd approached Neobank for a long-term loan 10 party fund the purchase of expensive, specialsed machinery. Nedoark is prepared to grant a loan of R400 000 , at a cost of 20\%. MVP Limited uses the athertax cost of debt and the rarginal tax mate is 30%. MVP Limited also aine to sell 100000 ordinary shares at RS exch. The cost of the ordiay shares using the capital asset pricing model is 19.90%