This question has FIVE Parts . b. cd. and Briliant Industries is considering an investment in a fleet of 10 delivery vehides to take its products to customers. The vehicles will cost $60,000 each to buy payable in Immediately, the annual running costs are expected to be $50.000 for each vehicle including driver's salary) The vehicles are expected to operate successfully for six years, at the end of which period they will have to be scrapped with disposal proceeds expected to be about $12.000 per vehide. At present the business uses a commercial carrier for all its deliveries. It expects this carrier to charge a total of 5920,000 each year for the next six years to make the deliveries. Brilliant industries uses a 13.5 required rate of return to analyses Investment proposal Required: (al Calculate the Accounting Rate of Return of Investing in the delivery vehicles (3 marks) b) Calculate the Payback period of investment in the delivery vehicles marks) lo Calculate the Net Present Value of the proposed Investment in delivery wides (6 marks) Rased on your calculations in all and id above, you are required to advice Brilliant Industries if it should invest in the to delivery vehicles or continue using the commercial carrier for its deliveries. (2 marks) (e) i one reason why investment projects must be analysed before the investments are made (1 marki AITAN This question has FIVE Parts . b. cd. and Briliant Industries is considering an investment in a fleet of 10 delivery vehides to take its products to customers. The vehicles will cost $60,000 each to buy payable in Immediately, the annual running costs are expected to be $50.000 for each vehicle including driver's salary) The vehicles are expected to operate successfully for six years, at the end of which period they will have to be scrapped with disposal proceeds expected to be about $12.000 per vehide. At present the business uses a commercial carrier for all its deliveries. It expects this carrier to charge a total of 5920,000 each year for the next six years to make the deliveries. Brilliant industries uses a 13.5 required rate of return to analyses Investment proposal Required: (al Calculate the Accounting Rate of Return of Investing in the delivery vehicles (3 marks) b) Calculate the Payback period of investment in the delivery vehicles marks) lo Calculate the Net Present Value of the proposed Investment in delivery wides (6 marks) Rased on your calculations in all and id above, you are required to advice Brilliant Industries if it should invest in the to delivery vehicles or continue using the commercial carrier for its deliveries. (2 marks) (e) i one reason why investment projects must be analysed before the investments are made (1 marki AITAN