12. Trees Ltd sells tree stumps. The company is undertaking a now project that will generate sales of R10 000 per year. Variable costs amount to 50% of sales and flxed costs amount to R1000 per year. The company has depreciation expenses of R2000 per year. The applicable tax rate is 28%. Determine the relevant annual cash flow for the project. 1. R3 440 2. R10 000 3. R4 000 4. R2880 5. R1 440 13. MAC Ltd bought a packing machine five years ago for R10 000. The machine is depreciable over 10 years using the straight-line mothod for tax and accounting purposes. The machine is to be sold at the end of year 5 for R9000. How much recoupment tax would be paid an the sale of the machine, assuming a tax rate of 28% ? 1. R0 2. R280 3. R1 120 4. R4 000 5. Rg 000 14. Gardens Ltd has a WACC of 15%, the risk-free rate ia 10% (the risk premium of the company's cost of capital is therefore 5% ) and the company assigns a project risk premium to projects according to their CVs as follows: CV0,6:1,5 the cost of capital risk premam What is the discount rate that Gardons Ltd. should apply for a project with an expected coefitcient of variation of 0.65 ? 61 1. 0.65% 2. 5.00% 3. 7.50\% 4. 9.00% 5. 12.50%