QUESTION 5 Read the information below and answer the following questions INFORMATION The management of Mastiff Enterpris

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QUESTION 5 Read the information below and answer the following questions INFORMATION The management of Mastiff Enterprises has a choice between two projects viz. Project Cos and Project Tan, each of which requires an initial investment of R2 500 000. The following information is presented to you: Year 2 32₂2 5 PROJECT COS Net Profit R 130 000 130 000 130 000 130 000 130 000 PROJECT TAN Net Profit R 80 000 180 000 120 000 220 000 50 000 A scrap value of R100 000 is expected for Project Tan only. The required rate of return is 15%. Depreciation is calculated using the straight-line method.
Use the information provided above to calculate the following. Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. Payback Period of Project Tan (expressed in years, months and days). Net Present Value of Project Tan. Accounting Rate of Return on average investment of Project Tan (expressed to two decimal places). Benefit Cost Ratio of Project Cos (expressed to three decimal places). Internal Rate of Return of Project Cos (expressed to two decimal places) USING INTERPOLATION. 5.1 5.2 5.3 5.4 5.5 (3 marks) (4 marks) (4 marks) (4 marks) (5 marks)
Number d Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 * 15 16 17 18 19 20 25 30 40 50 60 20 X 0.9800 0.9612 0.9426 0.9246 0.9070 0.8900 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 09346 09259 0.9174 0.9091 0.9515 0.9057 * 5% 0.8326 0.8219 0.7835 0.7473 0.9420 0.8880 0.8375 0.7903 0.7462 0.7050 0.6663 0.8874 0.7885 0.7014 0.8700 0.8963 0.8043 0.7224 0.8496 0.5847 0.5268 0.7579 0.9143 0.8368 0.7684 0.7026 06446 0.5919 0.5439 0.5002 0.4604 0.4241 0.9706 09423 09151 0.8890 0.8838 0.8396 0.8163 0.7938 0.7722 0.7513 07312 0.7118 0.6931 06750 0.8575 06407 06244 0.8066 0.5934 0.5787 0.5120 0.8787 0.7730 0.6810 0.6006 0.5300 0.9610 0.9238 0.8886 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.6587 0.6355 06133 0.5921 05718 0.5523 05337 05158 0,4967 0.4823 0.4096 9% 0.6246 0.8444 0.7142 0.6050 10% 11% 12% 0.8734 0.8573 0.8417 0.8264 08116 0.5568 0.8528 0.7284 0.6232 0.5339 0.4581 0.9327 0.8706 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 05132 0.4817 0.4523 0.4251 0.3996 0.3759 0.7798 0.6096 0.4776 0.7130 0.6806 0.6499 06209 05936 0.5674 0.7419 0.5521 0.4120 0900908929 0.6302 0.5963 0.5646 05346 0.9236 0.8536 07894 0.7307 0.6768 06274 0.5820 0.5403 0.5019 0.4666 04339 04039 0.3762 03506 03269 03050 0.2848 07972 0.6611 0.5775 0.5051 0.4423 0.3878 0.3406 0.2992 02633 13% 14% 15% 16% 0.8850 05134 0.4363 0.3714 0.3166 0.7831 0.8277 0.6864 0.5703 0.4746 0.3957 0.3306 0.2765 0.2317 0.3909 0:3806 08772 08696 0882108547 0.5428 05194 0.4972 0.4761 05068 0:4803 0.4556 0.4323 0.8613 0.7430 0.6419 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 0.2394 02090 01827 0.1599 0.9053 0.8203 07441 0.6756 0.6139 0.5584 0.5063 0.4632 0.4224 0.3856 0.3522 0.3220 0.2946 0.2697 0.2472 0.2267 02080 0.1911 0.1756 0.1615 0.1074 0.7696 0.7561 07432 07305 0.7182 0.7062 0.6944 0.6400 0.3751 0.2963 0.2330 0.1842 0.1460 0.1160 0.0923 03329 03075 02843 0.3936 0.3387 0.2919 0.2519 0.2176 0:1883 01631 0.1415 0.8360 0.7002 0.5874 0.4936 0.4156 0.3503 0.2959 0.2502 0.2120 0.1799 0:1528 01300 0.1108 0.4561 0.3538 0.3332 18% 19% 20% 02630 02434 0.3898 0.3704 0.3521 08475 08403 0.8333 0.8000 0.4751 0.4289 0.3875 0.3506 03173 0:2875 0.2607 0.2366 02149 0.1954 0.1778 0.1619 0.1478 0.1348 0.0859 0.4970 0.4440 0.3971 0.3556 0.3186 0.2858 0.2567 0.2307 02076 0.1869 0.1685 0.1520 0.1372 0.1240 0.1122 0.0687 0.8196 0.6730 05537 0.4564 0.3769 0.3118 0.2584 0.2145 0.1784 0.1486 0.1240 0.1037 0.0868 0.0728 0.0611 0.4688 0.4150 0.3877 0.3262 0.2897 0.2575 0.2292 02042 0.1821 0.1625 0.1452 0.1299 0.1163 0.1042 0.0936 0.0550 0.1401 01229 0.1079 0.0949 25% 04371 04190 0.4019 0.3277 03139 02959 0.2791 02097 02320 02046 0.1807 0.1597 0.1413 0.1252 0.1110 0.0985 0.0876 0:0779 0.0440 00514 0.2660 0.2487 02326 0.1678 0.3349 02621 02256 0.2090 0.1908 0.1342 0.2703 02311 0.1978 0.1696 01456 0.1252 0.1078 0.0929 0.0802 0.0093 0.0000 0.0520 0.0451 0.0225 0122901069 0.0930 0.0811 0.0708 00618 0.0541 0.0281 0.0836 0.0736 0.0849 0.0352 0094600808 0.0891 0.0592 0.0508 0.0437 0.0376 0.0180 0.1945 01635 0.1377 0.1161 0.0981 0.0829 0.0703 0.0596 00506 0.0431 0.0367 0.0313 0.0144 0.5504 0.3048 0.1697 0.0951 0.0536 0.0303 0.0173 0.0099 0.0057 0.0003 0.0019 0.0011 0.0007 0.0004 0.0002 0.0001 0.0001 0.0433 0.0366 0.0300 0.0261 0.0115 0.0736 00588 0.0471 00378 0.0304 0.0245 0.0197 0.0160 0.0129 0.0106 0.0038 0.3083 0.2314 0.1741 0.1314 0.0994 0.0754 0.0573 0.0437 0.0334 0.0256 00196 00151 0.0116 0.0090 0.0070 0.0054 0.0042 0.0012 0.6080 0.3715 0.2281 0.1407 0.0872 0.0543 0.0339 00213 0.0134 0.0085 0.0054 0.0035 0.0022 0.0014 0.0009 0.0006 0.0004 0.0003 0.0002 0.6717 0.4529 03068 0.2083 01420 0.0972 0.0668 0.0460 0.0318 0.0221 0.0154 0.0107 0.0075 0.0053 0.0037 0.0026 0.0019 0.0013 0.0010 0.0007 0.0001 . . 0.0001
Number d Periods 1 2 3 4 5 B 7 00 9 10 1 12 13 14 15 16 17 18 19 20 25 30 40 因 8 1% 2% 3.9020 3.8077 4.8534 4.7135 29410 2.8839 2.8266 2.7751 2.7232 0.9901 0.9804 0.9709 0.9615 0.9624 0.9434 0.9346 0.9259 1.9704 1.9416 1.9136 1.8861 1.8694 1.8334 1.8080 7.6517 9.4713 8.9826 3% 10.3676 9.7868 13.0037 8.5680 8.1622 7.7861 7.4353 4% 12.1062 13.8661 12.8493 5% 14.7179 13.5777 6.7282 6.4720 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 6% 11.2561 10.5753 9.9540 9.3851 8.8633 32.8347 9.2526 26730 2.6243 5.7965 5.6014 5.4172 5.2421 50757 4.9173 4.7665 4.6229 4.4859 4.3553 42305 41114 39975 3.8887 3.7845 3.6847 35852 3.4976 3.4098 3.3256 12.1337 11.3484 10.6350 9.9866 9.3936 8.8527 11.2961 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 39.1961 31.4236 % 7.1078 6.8017 17.2260 15.6785 14.3238 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 36959 3.6048 35172 34331 3.3522 8.7605 8.3084 7.8869 7.3255 7.0197 6.7327 6.4632 6.2090 6.9713 5.7468 5.5348 5.3349 5.1461 4.9676 4.7988 4.6389 44873 43436 42072 40776 3.9544 3.8372 8% 1.7833 11.9079 11.1184 10.3797 9.7122 9.1079 22.0232 19.5235 17.4131 15.6221 14.0939 12.7834 8.3577 9% 10% 11% 12% 8.5302 8.1109 7.7217 7.3801 7.0236 6.7101 6.4177 6.1446 58852 5.6502 5426252161 50188 4.8332 4.6586 4.4941 4.3389 4.1925 10.5631 9.8986 9.2950 8.7455 8.2442 27.3555 23.1148 19.7928 17.1591 15.0463 44.9560 34.7609 27.6756 22.6235 18.9293 15.5623 14.2919 13.1661 12.1667 112741 10.4773 9.7632 9.1216 13.1339 12.0853 11.1581 10.3356 12.5611 11.6623 | 10.8378 10.1059 9.4486 8.8514 25771 25313 24869 24437 24018 23612 23216 22832 22459 2.2096 21743 2.1399 2.1066 25.8077 22.3965 19.6004 17.2920 15.3725 13.7648 12.4090 6.5152 6.2489 6.9952 5.7590 5.5370 53282 51317 49464 0.9174 09091 09009 0.8929 0.8850 08772 0.8896 08621 08547 08475 08403 0.8333 13% 1.7591 1.7356 1.7125 16901 1.6681 16467 16257 1.6052 1.5852 1.5656 1.5465 15278 8.3838 7.9427 7.5361 7.1607 68137 64924 6.1944 5.9176 5.6603 5.4206 5.1971 14% 15% 16% 25.7298 21.4822 18.2559 15.7619 13.8007 3.1699 3.1024 3.0373 29745 29137 2.8550 2.7982 2.7432 2.6901 2.6386 2.5887 7.4987 7.1390 8.8062 6.4951 62065 5.9377 5.6869 5.4527 52337 5.0286 4.8364 4.6560 4.4865 4.3271 9.6036 4.8684 47122 4.5638 4.4226 4.2883 4.1604 40388 3.9224 3.8115 3,7067 3.6046 7.9038 7.4869 7.1034 6.7499 6.4235 6.1218 5.8424 5.5831 5.3423 16.3963 14.9920 13.7535 12.6593 11.6896 10.8276 10.0591 9.3719 8.7556 8.2014 7.7016 7.2497 6.8399 6.4674 6.1280 18.0456 16.3614 14.8775 13.5903 12.4622 11.4899 10.5940 9.8181 9.1285 85136 7.9833 17% 18% 19% 20% 8.3126 7.8237 7.3752 6.9740 32743 3.1993 3.1272 3.0576 2.9906 7.7862 7.3667 6.9819 66282 63025 60021 57245 5.4675 4.771646066 4.4506 43038 4.1633 4.0310 8.5695 8.0607 7.6061 7.1909 68109 64624 6.1422 5.8474 5.5756 5.3242 5.0916 4.8759 4.6756 8.5436 80216 7.5488 7.1196 67291 63729 6.0472 11.6638 10.6748 9.8228 9.0770 84217 7.8431 7.3300 6.8729 11.2578 10.2737 9.4269 8.6938 8.0552 7.4957 7.0027 4.9884 4.7932 4.6106 4.4352 6.6039 6.2651 5.9542 56686 | 54053 5.1624 4.9377 4.7296 5.1183 49096 47147 4.5327 5.2290 5.0061 4.8023 4.6106 8.9501 8.3649 7.8350 7.3858 6.9380 6.5504 6.1962 58775 5.5845 5.3162 5.0700 4.8435 5.7487 54746 52223 4.9897 4.7746 5.8178 5.5339 5.2732 5.0333 4.8122 7.0248 6.6231 62580 5.9288 5.6278 5.3527 5.1009 4.8696 60971 5.7662 5.4869 5.1951 4.9476 6.5660 6.1772 5.8294 5.5168 52347 4.9789 13.3317 11.9346 10.7574 9.7791 8.9511 8.2438 7.6344 7.1050 66418 62335 5.8713 5.5482 5.2582 4.9968 12.2335 10.9617 99148 90417 8.3045 76752 7.1327 6.8606 62463 5.8801 55541 5.2823 4.9996 16.1614 14.0092 12.3766 11.0480 9.9672 9.0736 8.3240 7.6873 7.1401 6.6651 6.2402 5.8819 5.5553 5.2630 4.9999