QUESTION THREE (25 Marks) 3.1 Consider two projects whose cash inflows are not even. Assume...

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QUESTION THREE (25 Marks) 3.1 Consider two projects whose cash inflows are not even. Assume that the project costs R205 000. The net cash inflows for each year are as follows: REQUIRED 3.1.1 Calculate the payback period of each project and recommend the project that should be selected based on the payback period. (6 Marks) 3.2 Dunstan Limited has a choice of investing in one of two projects. The following details relate to these: REQUIRED 3.2.1 Use the net present value method to determine which project Dunstan Ltd should choose. (8 Marks) 3.2.2 Calculate the internal rate of return of Project Y. (6 Marks) 3.2.3 Discuss whether the advantages of using the NPV method outweigh the disadvantages

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