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

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QUESTION 5Read the information below and answer the following questionsINFORMATIONThe management of Mastiff Enterprises has a choice between twoprojects viz. Project Cos and Project Tan, each ofwhich requires an initial investment of R2 500 000. The followinginformation is presented to you:PROJECT COS PROJECT TANNet Profit Net ProfitYear R R1 130 000 80 0002 130 000 180 0003 130 000 120 0004 130 000 220 0005 130 000 50 000A scrap value of R100 000 is expected for Project Tan only. Therequired rate of return is 15%. Depreciation is calculatedusing the straight-line method.Use the information provided above to calculate the following.Where applicable, use the present value tablesprovided in APPENDICES 1 and 2 that appear after QUESTION 5.5.1 Payback Period of Project Tan (expressed in years, months anddays). (3 marks)5.2 Net Present Value of Project Tan. (4 marks)5.3 Accounting Rate of Return on average investment of Project Tan(expressed to two decimal places). (4 marks)5.4 Benefit Cost Ratio of Project Cos (expressed to three decimalplaces). (4 marks)5.5 Internal Rate of Return of Project Cos (expressed to twodecimal places) USING INTERPOLATION. (5 marks)