Question 1 XYZ Corporation is considering a capital budgeting project and requires a detailed analysis. The company has provided you with the following financial information and ratios: Return on Investment (ROI): 15% Payback Period: 3 years Net Present Value (NPV): R50,000 Internal Rate of Return (IRR): 12% Cash Flows are as follows: Year 1: R20 000; Year 2: R30 000; Year 3: R40 000 Required: 1.1. Calculate the initial investment required for the project. 1.2. Discuss the significance of each ratio in evaluating the project. 1.3. Based on the information given, should XYZ Corporation undertake the project? Justify your answer. 1.4. Calculate the ARR for XYZ Corporation. Assume depreciation is calculated on the straight-line method and that the project has a scrap value of R5000. Question 2 Use the information provided in the table below to answer the given questions: Selling Price: R25 Variable Cost: 15% of selling price Fixed Cost: R120 000 Expected sales: 25000 units a) Calculate the break-even point in units and the break-even value in Rand. b) Determine the margin of safety in units. c) What do you understand by the term break-even?