?Utbi Ltd are looking to invest in new machinery in view of their expanding operations. The following

information has been extracted from the reports relating to the project:

Investment R$1000000$ ?

Average annual profit R$342500$ ?

Life span $4$ ?years

Minimum required rate of return $12\%$ ?

Net Cash flow$$s:

?$1$st year R$200000$ ?

?$2$nd year R$350000$ ?

?$3$rd year R$400000$ ?

?$4$th year R$420000$ ?

?

Required:

?

$2\mathrm{.}1$ ?Calculate the accounting rate of return. $(5)$ ?

$2\mathrm{.}2$ ? Calculate the payback period $(6)$ ?

$2\mathrm{.}3$ ? Calculate the net present value. $(9)$ ?

$2\mathrm{.}4$ ?

Would the project be acceptable at a cost of capital of $10\%?$ ?Motivate your answer with an

appropriate calculation.

$(5)$