Tesla Motors is considering investing in a project with the following forecasted details: Initial amount invested is R500,000 and expected residual value is R40,000.

Year	Cashflows	Discount factor
Year 1	R100,000	0.909
Year 2	R120,000	0.826
Year 3	R150,000	0.751
Year 4	R180,000	0.683
Year 5	R200,000	0.621

Assuming that the cost of capital for the company is 12%. The cash flows are after tax and depreciation is charged at R50,000 per year. Tax rate is 30%.

Required:

1. Calculate each of the following: 1.1.1. Accounting Rate of Return (5) 1.1.2. Payback period (5)