Number d Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1% 2% 0.9001 3% 0.9003 0.0612 0.9426 0.9246 0.0070 4% 6% 6% 7% 0.9604

[answerhappygod]

Number D Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 2 0 9001 3 0 9003 0 0612 0 9426 0 9246 0 0070 4 6 6 7 0 9604 1 (210.47 KiB) Viewed 13 times

Number D Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 2 0 9001 3 0 9003 0 0612 0 9426 0 9246 0 0070 4 6 6 7 0 9604 2 (210.36 KiB) Viewed 13 times

appendix 1: present value of R1

Number D Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 2 0 9001 3 0 9003 0 0612 0 9426 0 9246 0 0070 4 6 6 7 0 9604 3 (66.97 KiB) Viewed 13 times

Number D Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 2 0 9001 3 0 9003 0 0612 0 9426 0 9246 0 0070 4 6 6 7 0 9604 4 (66.03 KiB) Viewed 13 times

Number D Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 2 0 9001 3 0 9003 0 0612 0 9426 0 9246 0 0070 4 6 6 7 0 9604 5 (188.76 KiB) Viewed 13 times

Number D Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 2 0 9001 3 0 9003 0 0612 0 9426 0 9246 0 0070 4 6 6 7 0 9604 6 (182.41 KiB) Viewed 13 times

Number d Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1% 2% 0.9001 3% 0.9003 0.0612 0.9426 0.9246 0.0070 4% 6% 6% 7% 0.9604 09709 0.0615 00624 0.9434 09346 0.9250 0.9610 0.9233 0.8885 0.8548 08227 0.9420 0.8980 0.8375 0.7903 0.7462 0.9143 0.9327 0.8706 0.8131 0.7500 0.9615 0.9067 0.8626 0.8219 0.7835 0.7473 0.7130 0.8963 0.9706 0.9423 09151 0.8890 0.8638 08306 08163 0.7938 07722 07513 07312 08000 0.8043 0.7921 0.7629 0.9053 0.8200 0.7441 0.6756 06130 0.5584 0.5083 8% 0.8700 0.7579 06611 0.5775 0.9235 0.8535 0.7894 0.7307 0.6768 06274 0.5820 0.5403 0.5019 04666 04330 07224 0.6496 0.5847 0.5268 04751 0.8874 0.7885 0.7014 0.6246 0.5668 0.4970 10% 0.8368 0.7664 0.7026 06446 0.5919 0.5439 0.5002 04604 08787 0.7730 0.6810 0.6006 0.5303 0.4688 08116 07072 0.7831 0.7666 08734 08573 06417 08264 11% 04440 0.7350 0.7004 0.0830 06687 0.0174 09001 0.5000 089 08850 08772 0800 0821 0,6806 0.6499 06200 0.5935 12% 13% 04289 0.3875 0.3505 0.3971 03565 03186 0.7050 06063 0.6302 0.5063 0.5645 05346 05066 0.4803 0456 04323 04104 0.300 03173 14% F 04150 0.3677 0.3262 0.2807 02575 0.5051 04423 0.3878 03405 02902 02633 0.2320 15% 07118 06031 0.6750 66575 04241 0.3900 0.3606 0.3329 0.3075 02843 02858 02567 02875 10% 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 04817 04523 04251 0.3796 0.3750 0.3538 03332 03139 02969 02791 0209 0.4632 04224 0.3956 0.3522 0.3220 02946 02537 02472 02267 07561 07432 07306 07182 05674 05428 0.5194 04972 04761 04661 04039 03762 0.3506 0.3269 03030 02046 GEACT 17% 0 BEAT 02607 0.2366 02149 0.6356 06133 0.5621 0.5718 0.5623 0.5337 0.5198 04987 GAR23 0.46 02307 0.2076 0.1869 16% 10% 2174 08475 08403 08333 07062 08044 0.8244 06000 0.0004 6.5787 0.5120 02848 02060 04371 04150 0.4019 6.32771 0.3704 0.3621 0.3349 02621 2174 0.8000 02080 Q1911 0.1756 06400 02487 02336 0.1678 0.2630 02434 02256 02050 0.1908 0.1342 0.1964 0.1778 0.1619 0.1476 0.1685 0.1520 0.1372 0.1240 0.2292 02042 0.1821 0.1625 0.1452 0.1290 01163 0.1042 0.1615 01074 0.0035 01346 0.0898 0.1807 0.1597 0.1413 0.1252 01110 0.0985 0.0876 0.0779 0.1122 0.0627 0.0650 0.0440
14 16 16 17 18 19 20 25 30 S 08700 0.7579 60 11990 0.6776 05661 04423 03878 03406 02540 0263 6200 02046 61807 0.1647 0.1413 05613 0.7430 GEA19 GS 04810 04173 63604 63162 02745 02304 02060 01827 0.100 01401 0172 0.1079 09 008 00730 00649 0092 08528 6.7284 0.6232 0.5330 04661 03035 0397 02419 02519 02176 0183 01631 01415 0.125 0.1046 00800 08:360 0.7000 0.5874 04906 04165 0300002369 0252 02120 0.1799 0.1528 0.1300 0.7419 0.5621 08444 07142 0000 0.5194 GA363 03714 03166 02703 02311 6.1978 0.166 0.14 0.1252 61678 GIES 000 000 000 0000 00461 00025 08196 06730 0.5637 0.4564 0.3760 03118 02584 02145 0.1784 0.1486 0.1240 0.1037 00868 0.0726 00611 00014 40 0.6717 04529 03066 0.2003 0.1420 0.0072 0.0668 00460 0.0318 08277 0.666A 05703 0.4746 03967 0.336 0.2766 02317 0.1945 01635 6.1377 01161 00661 00639 00705 0.0056 0.0006 00431 04120 0.3083 02314 01741 0.1314 00004 00754 00673 00437 65334 0.7798 0.6096 64776 03751 02953 02330 0.1842 01460 01160 005623 05736 005 00471 00378 0.0004 0.0045 0.0197 06060 0.3715 02281 0.1407 00872 00543 0.0330 00213 00134 0.5504 03048 0.1607 0.0051 0.0635 0.0303 00173 0.0000 0.0221 0.180 0.0085 60154 00107 61110 64 00879 00779 0.0440 0.0067 0.0033 0.0019 00046 000 0001 01440 0078 00437 0.0376 0.0180 0.0075 0.0063 0.0007 00X4 0.0035 0.0022 0.0014 0.0009 00256 60196 00151 00116 6.0000 00011 0.0007 0.0004 0.0002 06708 0.0026 0.0019 0.0006 0.0004 0.0001 0.0001 00018 0041 90000 90000 0.0087 0.0003 " 0.0013 0.0144 00150 00123 60106 0.0008 19270 0.0070 0.0004 0.0042 00012 0.0013 0.0010 0.0001 0.0002 60115 . 0.0004 .
Question 5 Use the information provided to answer the questions. 5.1 Use the information provided below to calculate the following. Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. Calculate the Payback Period of Project A (expressed in years, months and days). 5.1.1 5.1.2 5.1.3 5.1.4 Calculate the Accounting Rate of Return (on average investment) of Project B (expressed to two decimal places). Calculate the Net Present Value of each project (with amounts rounded off to the nearest Rand). Use your answers from question 5.1.3 to recommend the project that should be chosen. Motivate your choice. (3 marks) (5 marks) (6 marks) (1 marks)
Zeda Enterprises has the option to invest in machinery in projects A and B but finance is only available to invest in one of them. You are given the following projected data: Initial cost Scrap value Depreciation per year Net profit Year 1 Year 2 Year 3 Year 4 Year 5 Net cash flows Year 1 Year 2 Year 3 Year 4 Year 5 Additional information The discount rate used by the company is 12%. Project A R300 000 R40 000 R52 000 R20 000 R30 000 R50 000 R60 000 R10 000 Project B R300 000 0 R60 000 R90 000 R90 000 R90 000 R90 000 R90 000
Number of Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 30 40 50 60 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 18% 17% 18% 19% 20% 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.5346 0.5259 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 0.8696 0.8621 0.8547 08475 0.840008303 0.8000 03803 03512 03425 0.9246 0.50170 0.8800 0.8734 08573 08417 08264 08116 07972 0.7831 0.76885 0.7961 0.7432 0.7306 0.7182 0.7062 08944 06400 0.9706 0.9423 09151 08880 0.8638 0.83896 0.8163 0.7838 0.7722 0.7513 0.7312 07118 06831 06750 0.6575 06407 06244 08086 0.593405787 0.5120 0.9610 0.9238 0.8885 0.8548 0.8227 0.7921 0.7829 0.7350 0.7084 0.6830 0.6567 0.6355 0.6133 0.5821 0.5718 0.5523 0.5337 0.5158 0.4967 0.4623 0.4096 0.9515 0.9057 0.8528 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.5996 0.5674 0.5428 0.5194 0.4972 04781 04661 0.4371 04190 0.4019 0.3277 25% 0.9420 0.8880 08375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5346 0.5066 04803 04555 0.4323 04104 0.3896 0.3704 0.3521 0.3349 03349 02621 0.9327 0.8706 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.4817 0.4523 0.4251 0.3996 0.3759 0.3538 0.3332 0.3139 0.2969 02791 09236 08535 0.7894 0.7307 06768 06274 0.5820 0.5403 0.5019 0466504399 0.4099 0:3762 0.3805 0.3099 0.305002848 02860 02487 02306 0.1678 0.9143 0.8368 0.7964 0.705 06446 0.5919 0.5429 05002 04604 0.4241 0.3909 03606 03329 0.3075 0.2943 02830 02434 02256 0.2060 0.1998 0.1342 0.9053 0.8203 0.7441 06756 06139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3522 0.3220 0.2946 0.2597 0.2172 0.2267 0.2060 0.1911 0.1756 0.1615 0.1074 02097 0.8963 0.8043 0.7224 0.6498 0.5847 0.5288 0.4751 0.4289 0.3875 0.3506 0.3173 0.2875 0.2507 0.2385 0.2149 0.1954 0.1778 0.1619 0.1478 0.1346 0.0669 08874 0.7885 0.7014 06246 0.5568 0.4870 0.4440 0.3871 03555 0.3166 02858 02567 0.2307 0.2075 0.1869 01685 01520 0.1372 0.1240 0.1122 0.0687 0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 0.2575 0.2282 0.2042 0.1821 0.1625 0.1452 0.1299 0.1163 0.1042 0.0805 0.0550 0.8700 0.7579 06811 0.5775 0.5061 0.4423 0.3878 0.3406 02952 0.2633 02320 02048 0.1807 0.1597 0.1413 0.1252 01110 00966 0.0876 00779 00440 0.8813 0.7430 08419 0.5563 0.4810 04173 0.3624 0.3152 02745 02394 02090 0.1827 0.1599 0.1401 0.1229 0.1079 0.0949 00836 0.0736 0.0649 0.0062 0.8444 0.7142 0.8050 0.5134 0.4363 0.3714 0.3166 0.2709 02311 0.1978 0.1696 0.1456 0.1252 0.1078 0.0929 0.0002 0.0090 0.0600 0,0520 0.0451 0.8528 0.7284 0.8232 0.5339 0.4581 0.3836 0.3387 0.2919 0.2519 0.2176 0.1883 0.1631 0.1415 0.1229 0.1089 0.0930 0.0811 0.0708 0.0618 0.0541 0.0281 0.8360 0.700 0.5874 0.4606 04155 0.3803 0.2959 0.2502 02120 0.1799 0.1528 0.1300 01108 0.0045 0.0808 0.069100652 00508 00437 0.0376 0.0376 0.0180 0.8277 0.6864 0.5703 0.4746 0.3967 0.305 0.2765 0.2317 0.1945 0.1635 0.1377 0.1161 0.0981 0.0629 0.0703 0.0696 0.0506 0.0431 0.0367 0.0313 0.0144 0.8196 0.6730 0.5537 0.4564 0.3789 0.3118 0.2584 0.2145 0.1784 0.1486 0.1240 0.1007 0.0668 0.0728 0.0811 0.0614 0.0433 0.0366 0.0308 0.0261 0.0115 0.7798 0.8066 0.4776 0.3751 0.2953 0.2330 0.1842 0.1460 0.1160 0.0923 0.0736 0.0588 0.0471 0.0378 0.0004 0.0045 0.0190 00150 00129 00105 0.0038 0.7419 0.5521 0.4120 0.3083 0.2314 0.1741 0.1314 0.0994 0.0754 0.0573 0.0437 0.0334 0.0256 0.0195 0.0151 0.0116 0.0090 0.0070 0.0054 0.0042 0.0012 0.8080 03715 02281 0.1407 0.0872 0.0643 0.0039 0.0213 0.0134 0.0065 0.0054 0.0035 0.0022 0.0014 0.0009 0.0006 0.0004 0.000 0.00 0.0001 0.6717 0.4529 0.3066 0.2083 0.1420 0.0872 0.0668 0.0960 0.0318 0.0221 0.0154 0.0107 0.0075 0.0053 0.0037 0.0025 0.0019 0.0013 0.0010 0.0007 0.0001 0.5504 0,3048 0.1687 0.0961 0.0535 0.0003 0.0173 0.0099 0.0057 0.0033 0.0019 00011 0.0007 0.0004 0.0002 0.0001 0.0001 APPENDIX 2: PRESENT VALUE OF A REGULAR ANNUITY OF R1 PER PERIOD FOR N PERIODS
Number of Periods 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 30 40 50 60 1% 29410 2% 3% 1.9704 1.9415 19136 1.8861 1.8564 1.8334 2.8839 2.8286 8.568) 3.9020 3.8077 3.7171 3.6299 3.5460 4% 11.2561 0.9901 09804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9269 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 0.5896 0.8621 0.8547 0.8475 0.8403 0.8333 76517 7.3255 7.0197 6.7327 64630 8.1622 2.7751 2.7232 6.7282 6.4720 6.2303 6.0021 5.7864 5.5824 5% 12.1337 11.3484 10.6350 16.3983 4.8534 4.7135 4.5797 4.4518 4.3296 4.2124 4.1002 3.9927 3.8897 3.7908 5.7956 5.5014 5.4172 5.2421 5.0757 4.9173 4.7666 4.6229 4.4859 4.3553 13.8661 12.5493 11.9379 74353 7.1078 10.5753 9.9540 9.3851 6% 9.9856 2.6730 15.5623 14.2919 13.1661 12.1657 11.2741 7% 17.2260 15.6785 14.3238 13.1339 18.0458 16.3514 14.8775 13.5903 6.2098 10.3678 9.7988 9.2528 8.7805 8.3064 7.8869 7.4967 7.1390 6.8052 6.4961 22.0232 19.5235 174131 15.6221 3.4651 3.3872 3.3121 3.2397 3.1699 2.6243 25771 2.5313 2.4MB 12.4622 13.0037 12.1052 11.2961 10.5631 9.8906 9.2950 8.7456 1.8080 1.7833 1.7591 1.7355 1.7125 1.6901 1.6681 1.5467 1.6257 1.6052 5.3863 52064 5.0330 9.4713 8.9025 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.8892 5.6502 11.1184 10.3797 9.7122 9.1079 14.7179 13.5777 12.5611 11.6523 10.8378 10.1059 9.4466 5.9713 5.7466 5.5348 5.3349 6.8017 65152 6.2489 5.9952 5.7500 8.3838 79427 7.5361 9% 13.7535 12.62993 11.6896 10.8276 10.0591 9.3719 10% 12.0853 11.1581 10.3356 39.1961 31.4236 25.7298 21.4822 18.2559 15.7619 11.4099 10.5940 14.0939 12.7834 11.6536 32.8347 27.3555 23.1148 19.7828 17.1591 15.0463 13.3317 10.4773 9.7632 9.1216 8.5436 8.0216 13.8007 8.8514 44.9550 34.7609 27.6756 22.6235 18.9293 16.1614 14.0382 8.2442 7.7862 7.3667 8.5695 8.0607 7.6061 9.8181 8.8527 8.3577 7.9038 7.4869 7.1034 6.7499 6.4235 61218 5.8424 5.5831 5.3423 5.1183 4.9096 4.7147 12% 4.8584 4.7122 4.5638 4.4226 4.2933 4.1604 4.0386 3.9224 3.8115 3.7067 12.3766 2.4437 24018 23612 2.3216 2.2832 2.2450 22096 2.1743 2.1389 21065 3.1024 3.0373 2.9745 29137 28550 2.7962 2.7432 2.6901 2.6386 2.5887 10.6748 9.8226 9.0770 13% 3.6969 3.6048 35172 34331 3.3522 3.2743 3.1990 3.1272 3.0576 2.9906 5.5370 5.3282 4.2305 4.1114 3.9975 3.8887 3.7845 3.6847 3.5862 3.4976 34098 3.3255 6.2065 5.9377 5.1461 4.9676 4.7988 4.63889 4.4873 4.3436 42072 4.0776 39544 3.8372 15% 16% 17% 7.1607 6.8137 6.4924 6.1944 59176 5.6603 5.4206 5.1971 4.9884 4.7932 46105 4.4392 8.7556 8.2014 7.7016 18% 19% 20% 51317 4.9464 47716 48065 44506 4.3008 4.1633 40310 7:2497 1.5656 1.5465 1.5278 5.4262 5.2161 5.0188 4.8332 4.6586 4.4941 43389 4.1825 6.9819 6.6292 63025 60021 5.7245 5.4675 5.2293 5.0081 4.8003 46106 8.3126 7.8237 7.3792 6.9740 6.6009 6.2651 5.9642 5.8885 5.4053 5.1624 4.9377 4.7296 12.2335 10.9817 99148 9.0417 5.6889 5.4527 5.2337 5.0286 4.8364 4.6580 4.4885 4.3271 7.1909 68109 6.4824 6.1422 5.8474 5.5756 5.3242 5.0916 4.8759 4.6755 25.8077 22.3965 19.6004 17.2920 15.3725 13.7648 12.4090 11.2578 10.2737 9.4269 8.6938 8.0552 7.4967 11.0480 9.9672 9.0736 7.5408 7.1195 6.7291 6.3729 6.0472 5.7487 5.4746 5.2223 4.9697 4.7746 9.1265 8.5136 7.9633 7.4894 7.0248 6.6231 9.6036 8.9501 8.3649 7.8383 7.3658 6.9380 6.5504 6.1982 5.8775 5.5845 5.3162 5.0700 4.8435 84217 78431 7.3300 6.8729 6.4641 11.9246 10.7574 9.7791 8.9611 8.2438 7.6344 8.3240 6.8399 6.4674 6.1280 5.8178 5.5339 5.2732 56.0333 48122 5.9288 5.6278 6.3527 5.1009 4.8696 60871 5.7662 5.460 5.1961 7.1050 6.6418 6.2335 5.8713 8.3045 7.6752 7.1327 6.9805 6.2463 5.8801 4.5327 7.0027 6.5660 6.1772 58294 5.5168 5.2347 7.6873 7.1401 6.6851 6.2402 5.8819 5.5541 5.2623 5.5553 45476 5.5482 5.2582 4.9966 4.9709 4.9005 5.2630 4.9999