REQUIRED

Calculate the following from the information given below:

$4\mathrm{.}1\mathrm{.}1$ Payback Period $($expressed in years, months and days$).$

$4\mathrm{.}1\mathrm{.}2$ Accounting Rate of Return on initial investment $($expressed to two decimal places$).$

$4\mathrm{.}1\mathrm{.}3$ Internal Rate of Return $($expressed to two decimal places$)$ if the net cash inflows are R$400000$

per year for five years. Your answer must include two net present value calculations $($using

consecutive rates$/$percentages$)$ and interpolation.

INFORMATION

VRH Ltd is considering the purchase of Machine X$,$ details of which are provided below:

The cost of capital is $12\%.$ Depreciation is calculated using the straight$-$line method. No scrap value is

expected for the machine. Ignore taxes.