Description
FIN3701 ASSIGNMENT 1 SEMESTER 2 – 2024
UNIQUE NUMBER: 232195
DUE DATE: 20 AUGUST 2024
QUESTION 1.
REQUIRED:
1.1 Calculate the NPV for each of the three projects. (9 marks)
1.2 Calculate the annualised net present value (ANPV) of each machine.
1.3 Based on the NPV and IRR calculated above, would you advise Batlokwa (Pty) Ltd to invest their funds in the replacement? Give a reason for your answer. (2 marks)
QUESTION 2.
REQUIRED:
2.1 Calculate the cost of capital structure: ordinary shares, preference shares and cost of debt. (8 marks)
2.2 Calculate the weighted average cost of capital (WACC) for the company. (2 marks)
QUESTION 3.
REQUIRED:
3.1 Calculate the proceeds from the sale of current equipment. (4 marks)
3.2 Calculate the initial investment. (3 marks)
3.3 Calculate the operating cash flow and terminal cash flow. (13 marks)
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