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 calcu...
1.1 Calculate the NPV for each of the three projects. (9 marks)
NPV Calculation:
a. Machine A: NPV = (𝑅42 663.11)
b. Machine B: NPV = 𝑅6 646.58
c. Machine C: NPV = (𝑅3 160.52)
1.2 Calculate the annualised net present value (ANPV) of each machine. (9 marks)
ANPV Calculation:
a. Machine A: ANPV = 𝑅10 377.79 ≈ (𝑅10 378)
b. Machine B: ANPV = 𝑅2 188.53 ≈ 𝑅2 189
c. Machine C: ANPV = 𝑅876.76 ≈ (𝑅877)
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)
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Masters. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £2.22. You're not tied to anything after your purchase.