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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