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CAS3701 CASE STUDY 3 – 2023 (839944)
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CAS3701 CASE STUDY 3 – 2023 (839944)
CLOSING DATE: 08 SEPTEMBER 2023
You are required to:
1. Critique the capital budgeting calculations provided in the attached spreadsheet for each
option. Your response should include:
Discussion of errors made in the calculation
Discussion of assumptions made in the numbers/amounts used in the calculation
Impact of the above on the calculation.
2. Assuming that the borehole option is considered more viable than the municipality supplied
water from a quantitative perspective, discuss five relevant qualitative factors that should be
considered by the company in their decision between the two water supply options.
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