The management of Kristen Investors has to make a choice between two projects: Project Pro and Project Con.

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

INFORMATION:

Net profits Net profits

Project Pro Project Con 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 Pro. 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 Pro (answer in years, months and days). 3.2 Calculate Accounting rate of return for Project Con (answer in two decimal places). 3.3 Net Present Value for Project Pro. 3.4 Internal Rate of Return for Project Con using interpolation (answer in two decimal places.