UESTION 5 (20 Marks) Enslin Clothing, a micro clothing manufacturing enterprise has the option to invest in machinery for projects M and N. However due to constraint financial resources the company may only be able to invest in one of th em. You are given the following projected data: Project M Project N Investment 190 000 180 000 Net cash flows Year 1 62 000 58 000 Year 2 62 000 63 000 Year 3 62 000 68 000 62 000 Year 4 72 000 62 000 Year 5 51 000 Additional information: Project M machinery will be disposed of at the end of year 5 with a scrap value of R20 000. 1. 2. Project N machinery will be disposed of at the end of year 5 with a nil scrap value. Depreciation is calculated on a straight line basis. 3. The discount rate to be used by the company is 12%. 4. Required: (5 mar 5.1 Calculate the accounting rate of return for project M and N. (3 ma 5.2 Calculate the payback period for project M