Samsung Ltd is considering investing in a new mobile manufacturing plant with the following forecasted details: Initial amount invested is R1,200,000 and expected residual value is R100,000.

Year	Cashflows	Discount factor
Year 1	R350,000	0.909
Year 2	R360,000	0.826
Year 3	R370,000	0.751
Year 4	R380,000	0.683
Year 5	R390,000	0.621

Assuming that the cost of capital for the company is 7%. The cash flows are after tax and depreciation is charged at R110,000 per year. Tax rate is 25%.

Required:

Calculate each of the following: 1.1.1. Accounting Rate of Return (5) 1.1.2. Internal Rate of Return (IRR) (10)