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The table below gives the estimated cash flow for three different projects your company is planning on embarking. The estimate are depicted in South African
The table below gives the estimated cash flow for three different projects your company is planning on embarking. The estimate are depicted in South African Rand Year 0 1 2 3 4 5 Project 1 ROI = - R 250 000.00 + R 40 000.00 + R 70 000.00 + R 80 000.00 + R 50 000.00 + R 70 000.00 Project 2 -R 260 000.00 +R 80 000.00 +R 100 000.00 +R 80 000.00 + R 15 000.00 + R 15 000.00 O a. Project 1 O b. Project 2 O c. Project 3 O d. None of the projects Project 3 Table 1 Using the information presented in the above table, perform project evaluation calculations and answer the following questions. Consider using the below formula for calculating ROI Average Annual Profit - R 280 000.00 + R 20 000.00 + R 100 000.00 + R 50 000.00 + R 60 000.00 + R 100 000.00 x 100 Total Investment Which one of the three projects would you recommend based on the ROI calculation
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