The following scenario relates to questions 11 to 15 . The following information relates to an investment project which is being evaluated by the directors of Fence Co, a listed company. The initial investment, payable at the start of the first year of operation, is $3.9m. cuis belleve that this investment project will increase shareholder wealth if it achieves a investmentere capital employed greater than 15%. As a matter of policy, the directors require all methods sojects to be evaluated using both the payback and return on capital employed methods, Shareholders have recently criticised the directors for using these investment appraisal method. The directors have a remuneration package which includes a financial reward for achieving an annual return on capital employed greater than 15%. The remuneration package does not include a share option scheme. - 11 What is the payback period of the investment project? 2.75 years 1.5 years 2.65years 1.55years - 12. Based on the average investment method, what is the return on capital employed of the investment project? 13.3% 26.0% 52.0% 73.5%