ANSWER ALL OF QUESTION 5 QUESTION 5 Read the information below and answer the following questions INFORMATION The manage
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ANSWER ALL OF QUESTION 5 QUESTION 5 Read the information below and answer the following questions INFORMATION The manage
QUESTION 5 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: 5.1 5.2 5.3 Year 5.4 1 5.5 2 3 4 5 PROJECT COS Net Profit R 130 000 130 000 130 000 130 000 1 130 000 PROJECT TAN Net Profit R 80 000 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. 180 000 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. 120 000 220 000 50 000 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. (3 marks) (4 marks) (4 marks) (4 marks) (5 marks) Number d Periods 1 * 4 5 7 1 19 2 69809 0901205020050465070 08500 0.8734 085730841708254 08115 07972 07831 0.7665 0.7561 07432 07305 0.7182 0.706208844 05400 # 12 14 15 16 17 M 15 20 APPENDIX 1: PRESENT VALUE OF R1 25 2% 3% 11% 10 0.9063 06203 07441 0756 039 05584 0.5083 0463204224 0.3855 0.3522 0:3220 0.2946 02687 03472 022687 0200001911 01796 115 1074 40 13% 50 17% 19% 20% 0.9901 03804 09709 09615 096240434 0834608259 09174 09091 090090.29 080 08772 0800862108547 0347508403033008000 D 08787 07730 06810 0.000 05303 048 04150 03677 0332 02867 02575 0.2292 0201201801062501462 0129001001000000 0970094230315130306 3073 07722 0753 07312 07118 08801 0675004575 064070244 050 055045050 0.961009238 8885548 08227 07521 07529 07250 07084 068300658706156 06:33 05821 0.5718 05523 05339 05158 043 042 04366 09515 09057 08525 025 07835 07473 07130 06806 0549 0620 0.580505674 0505 05154 04672 0476104361 04311 0419004019 0.3277 0.9420080 08375 07903 27462 07050 0.0063 06302 05863056450534605066 0.4803 04556 0.4325 04104 038 03704 03621 03369 02621 093270870608131 7599 0710708851 02276583505470 05132 04817 04523 04251 0.36660.3799 0.35380333 0.3125 0.2969 2791 0207 09235 085350784 0730678 0274 05820 0.5403 05019 04665043004039 03762 03506 0.329 03050 02548 02660 0248720178 09543 08308 1.7664 3.7025 0644605819 05439 0.0002 04504 04241 03909 03806 0.3129 03075 0.2843 0.2536 02434 02215 0.2090 4153861342 0890008043 07224 06496 5647 05268 0.4751 0.4299 03875 0350503173 02875 02807 02366 021490964 0778 01619 0547 01346 COM texsroots – 088407885 07014 062455680480 04440 3971 035680.3186 02866 02567 02307 0.20 0.869 1685 01520 01372 01240 122007 08700 075790881145775 05051 04423 03875 0.3405 0296202533 023200234601837 0.1587 0.1413 1252 01110 0085 2087 20779 00440 0.8613 0743005419 0585304810 04173 0.3240352 0274502394 0.2060 0.827 0199 01401012290107900545008050036 2004 00352 0.852 07284 0623205309045810390603357 02919 02519 0217001863 031 01415 01229010090090000811007060061800641 0021 08444 0754208050 051344363 03714031860270302311 090.1666 05450 0.1252 0.10 0.000000000000000000 1045100225 083600700205874 043 04155 03503 02950 020202120 01790 015201300 110 000 000 000 000 00437 2076 010 08277 06854 05703 04746 0.3967 03305 0.2766 02317 01545 01635 0.1377 0.11 0.0981 0.0629 0.000 0.06 0.0506 0.0431 0002001300144 086 06730 05637 4564 3760 03118 02584 0214501784 01486 0.1263 01037 008 00728 0061100514 00433 050030100115 30 07419 05821 04120 3083 02214 0.1761 01314 00940075400673 0.0437 0.03360050019600150010000000000054 004200012 0779 08096 0.4776 43791 029630233001842 0140001180 00625 0.07300058800471003900504 0.0345 001503160 0.0129 00105 000 06717 04529 03066 0208314200082 00068 000 000 00221 00154 0010 0005 0.0053 0000 0000 00019 00013 0.0010.000 0.0001 0606003715 0.2281 0140 00672 00543 003390213 00134 0005 0.0064 0.0035 00022 0.0004 0.0009 0.0006 4000400003 2002 20001 0550403048 087 00061 006350303 0.0175 0.0000 00057 00000000100011 0000700004 0.0002 0.000 0.0001* APPENDIX 2: PRESENT VALUE OF A REGULAR ANNUITY OF R1 PER PERIOD FOR N PERIODS Number d Periods 1 2 3 1 9 4 3.9620 28077 3.7171 38295 35460 14661 3387233121 328 389 302430373 2945 29137 2850 2792 27432 26601 286 287 10 $ 48534 47136 4377 44818 43295 4224 410021927 1889 1790 1050 16048 3572 1433 13522 123 31903 112220576 29906 ▬▬▬▬▬▬▬▬ 6 579665801454172 5201 50/57 49175 47665 452294489 438634230641134396751887 17845 1847 15892 148 149 11256 6.7262 64720 8.2003 80021578645.5824538631.2064500004808447122 45638442264.283 4160443815224381517076006 12 13 14 15 25 16 15 17% 18% 19% 19% 20% 09901 09804 9729 09615 09634 09434 08045525909090909009 08529 0885008772080608621 084 080758408333 1.3704 15418 1313518801 184 1834 18080 17833 1.7 1.735 17125 18001 1581645716257 1852 1852 153 154 15279 29410 2880928296 2771 27232 26730 2020 2071 25311 2485 243 24018 23612 23216 2282 2259 2209 210 2096 2105 # 10.30 97860925 87605 83064786974967713906805264951 4306 59377 56869 54527 52337 502 48064468604486543271 19 7881773255 10174752762620965935706055548 53345556074967647988408944873 4300 42077437763964 18372 14713 8:5600 81522 7.7981 74353 73078 6.8017 6515262469 5966257590 45370 53382 51317 49464 47718 48065 445064300841633 40310 8:562085362 81109 77217 13601 70236 6101 64177 6.1446 5852 568254362 52161 50186 4833248580445414338425 138651 125450 1135911184 1037979.71229107900506018061 71905 6810954624 4.1422 58474 55755 13342 1066 45756 46755 ← Ħ T▬▬▬▬▬ 16 147179 135777 121 11821 108 109 94466 864 83578237139249340 682 42 59542 588855425351624 4977 47286 10 12 13711348416505535061862783577790746423641218566255801 5342354500547547457 13.037 121062 11.261 10.56318586 92960 8745682442 778627387 69819 662362 63625 402 57245 1-4575 52290 5.0081 482 46106 17 15.5623 42919 12 1681 121657 11.241 124775976321216580216 75438 2196 6.729 43729 60472 57487 1446 12221 457 4.7746 11 16.308314000 13.753512650 1160136276 100501 $3719 87500820147.706 7287683004457120517153391272 48122 20 18:0456 16:3514 14.8775 13500312-4622110105040181811258513679630 74804702484622 62560 540 54278 5.362751000 4806 25 22.0232 195235 174131 155221 140809 127834118806105748 952507784217 7841 73300 68725 64641 60971 57662 5469 96143075 30 25.8077 22.3965 19:5004 172520 153725 12.7548 12:4050 112578 13.273 1.425 86338 8085274957 10276.5060 55772 582941516812347 4570 40 32.6367 27385 2314817115150063 13331711107576779116208 7634 710066418 623518713 1542122490 38 1961 31 4226 25.7280 21 4822 182569 152619 38007 12:20 10.9617 99148 90417 83045 76527132766006 62463 5380155841125249996 60 443650 342900 276756 226235 1893 161614 14:02 12:37061104801672 103 3040 58737540 66001 62402 539 53 523049999
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