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MAC3702 ASSIGNMENT 1 SEMESTER 1 - 2023 (786412)
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MAC3702 ASSIGNMENT 1 SEMESTER 1 - 2023 () DUE DATE: 13 MARCH 2023
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MAC3702 ASSIGNMENT 1SEMESTER 1 - 2023
UNIQUE NUMBER: 786412
DUE DATE: 13 MARCH 2023
, Multiple Choice Questions:
Consider the following information to answer questions 1 to 6:
Gravel Galore is a company owned by Josaf Mokele and Michale Molefi. They started 10
years ago on a open piece of land next to Josaf’s home, in their own community to
provide sand, stone, gravel, concrete and more to the local people to assist them to gain
access to these types of building material more easily.
They became very successful quite fast and they were forced to start looking for a bigger
piece of land. They started to diversify into more types and sort of material needed for
building purposes.
Josaf Mokele and Michale Molefi are starting to investigate the opportunities to buy even
bigger land just outside Piet Retief. They are asking for your assistance in this regards.
You can assume that the discount rate is 9% and cost of capital is 12%.
1
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