INFORMATION The management of Mastiff Enterprises has a choice between two projects viz. Project Cos and Project Tan, ea

[answerhappygod]

INFORMATION
The management of Mastiff Enterprises has a choice between twoprojects viz. Project Cos and Project Tan, each of which requiresan initial investment of R2 500 000.
The following information is presented to you:
PROJECTCOS PROJECT TAN
Net Profit Net Profit
Year R R
1 130 000 80 000
2 130 000 180 000
3 130 000 120 000
4 130 000 220 000
5 130 000 50 000
A scrap value of R100 000 is expected for Project Tan only. Therequired rate of return is 15%. Depreciation is calculated usingthe straight-line method. Use the information provided above tocalculate the following. Where applicable, use the present valuetables provided in APPENDICES 1 and 2 that appear after.
5.1 Payback Period of Project Tan (expressed in years, monthsand days). (3 marks)
5.2 Net Present Value of Project Tan. (4 marks)
5.3 Accounting Rate of Return on average investment of ProjectTan (expressed to two decimal places). (4 marks) 5.4 Benefit CostRatio of Project Cos (expressed to three decimal places). (4marks)
5.5 Internal Rate of Return of Project Cos (expressed to twodecimal places) USING INTERPOLATION. (5 marks)