## Calculate the accounting rate of return for project A. (Answer expressed to 2 decimal places)

Question 3 (13 marks) The following information relates to two capital expenditure projects. Because of capital rationing, only one project can be accepted. Project A Project B Initial cost R800 000 R920 000 Expected life 5 years 5 years Expected scrap value R40 000 R60 000 Expected net cash inflows: End of year 1 R 320 000 R 400 000 2 280 000 280 000 3 260 000 200 000 4 240 000 200 000 5 220 000 200 000 _____ ________ The company estimates its cost of capital is 12%. Depreciation is calculated using the straight-line method. Required 3.1 Calculate the payback period for project B. (Answer expressed in years and months) (10 marks) 3.2 Calculate the accounting rate of return for project A. (Answer expressed to 2 decimal places) (3 marks)

### Demonstrate that there must be a spot along the path that the monk will pass on both trips at exactly the same time of day.

The Buddhist Monk Problem At sunrise one morning, a Buddhist monk began to climb a tall mountain. The path was narrow, and it wound around the mountain to a beautiful,….

### Why are these numbers arranged in this order?

Mental Set Try these two examples to see the effects of mental set A. Luchins’s Water-Jar Problem. Suppose that you have three jars, A, B, and C. Each of six….

### Divergent Production Tests Try the following items, which are similar to Guilford’s divergent production tests.

Divergent Production Tests Try the following items, which are similar to Guilford’s divergent production tests. 1. Many words begin with an L and end with an N. In 1 minute,….