3.4 You have been appointed as the Financial Manager of Teslo (Pty) Ltd. You need to evaluate the following two mutually exclusive projects with the following cash flows: Year Project A (CFs in Rands) Project B (CFs in Rands) 0 - 60 000 - 60 000 1 17 000 25 000 2 23 000 28 000 3 17 500 5 000 11 000 4 10 000 The discount rate for these two projects is 15%. 31 May 2022 - Module Code: EBAD401 Page 6 of 9 From the above information, calculate the following. Provide your final answers only [2] 3.4.1 Net Present Value (NPV) of Project A, and 3.4.2 Net Present Value of Project B QUESTION 1: [15 MARKS] Text Craft Ltd is analysing a proposed project with the following income and costs characteristics. The depreciation expense amounts to R10 000. There will be no salvage value. The tax rate is 28%. BASE CASE UPPER BOUND LOWER BOUND 15 000 16 000 Unit sales Price per unit R14.00 R 7.00 R10.00 R6.50 17 000 R18.00 R7.50 Variable cost per unit Fixed costs R26 000 R25 000 R27 000 1.1 Complete the following pro forma statement of profit/loss (income statement) for Text Craft Ltd. [7] BASE CASE WORST CASE R BEST CASE R R 224 000 (2) h) (1/2) Sales Variable costs 112 000 (2) D (1/2) Fixed costs 26 000 (1/2) (1/2) j) Depreciation 10 000 (1) (1/2) k) PBIT 76 000 (2). D (1/2) e) Tax (28%) 21 280 (2) m) (1/2) f) NPAT 54 720 (1/2), B) (1/2) 1.2 Calculate the operating cash flow (OCF) for both the worst and best cases. Provide your final answer only [3] 1.2.1 Worst Case (1) 1.2.2 Best Case (1) 1.3 Calculate the degree of operating leverage (DOL) for both the worst and best scenarios. Provide your final answer only [3] 1.3.1 Worst Case (11) 1.3.2 Best Case (1) 1.4 Calculate the accounting break-even point under the best-case scenario. Provide your final answer only [2] 1.4.1 Best Case a) b) c) d)