The management of Dorca Investors has to make a choice between two projects: Project X and Project Y.

Each project will require an initial investment of R2 500 000.

INFORMATION:

Net profits Net profits

Project X Project Y 1. 80 000 130 000 2. 180 000 130 000 3. 120 000 130 000 4. 220 000 130 000 5. 50 000 130 000

A scrap value of R100 000 is expected for Project X. Depreciation is calculated on the straightline basis. The required rate of return is 15%. REQUIRED: Use the information provided above to calculate the following: 3.1 Payback Period for Project X (answer in years, months and days). 3.2 Calculate Accounting rate of return for Project Y (answer in two decimal places). 3.3 Net Present Value for Project X. 3.4 Internal Rate of Return for Project Y using interpolation (answer in two decimal places.