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FIN3701 ASSIGNMENT 1 SEMESTER 2 - 2024 (232195)

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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...

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FIN3701
ASSIGNMENT 01
SEMESTER - 2
DUE DATE: 20 AUGUST




2024


"Elevate Your Excellence: Where Distinction Meets Assurance in Every Assignment!"

, FIN3701 ASSIGNMENT 1 SEMESTER 2 – 2024

UNIQUE NUMBER: 232195

DUE DATE: 20 AUGUST 2024




© FIN3701 1

, QUESTION 1.

REQUIRED:

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)




FULL CALCULATIONS SHOWN ON THE NEXT PAGE




© FIN3701 2

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