ou 1870 outline Riadinand Learn Student Email CPUTN CAPE PENINSULALL S SOAP2DAY Remaining Time: 2 hours. 28 minutes, 26 seconds Question Completion Status: The ABC International Bank which is a barking organisation headquartered in South Africa and with operating branches in all the nine provinces of South Africa and across the world has been struggling to get its Investment options in the right portfolios, especially when it comes to its International operations To Improve its investment options, the Bank has identified two projects from which one needs to be selected Project 1 was intended to improve its clients' banking experience by ensuring that all the customers that are registered as business organizations receive a mobile banking device that will allow their non cash carrying customers to use their debit or credit cards to pay for goods and services. This project was also in direct line with the bank's strategy of satisfying its customers and increasing its customers' base Project 2 was intended to support to executiven by giving them additional personat anahtants (PA) whon travelling across South Africa and abroad This project was also intended to improve the marketing position of the organisation and improve the communication between the executives and the head office The two projects were to be selected by combining different project selection methods, only the financial data are made available to you and the bank wants you to help in the selection process it is important to note that the company's culture is to give priority to projects that have the highest return on capital invested Both projects are subject to a 7% dhcount rate Project 1 development cost is projected to amount to R1 200 000, this amount includes R250 000 which is to be used for initiation meeting with the developers. To maintain the devices, the organisation was expected to spend R100 000 in the first year of the implementation, then maintenance costs are expected to increase annually by 5% for the next three years Project 1 was expected to make a rotum of 50% of the total development cost in its first year after implementation, and then the return would decrease by 10% per year to each of the remaining years Project 2 was to cost R800 000, this amount excludes the R100 000 which was used to pay for labour consultants who assisted with the interviews. The additional cost was that of training of the PAs which was about R75 000 in the first year then the cost was expected to increase annunty by 10% for the next three years Project 2 was expected to make a return of 50% of the total development cost after its first year of Implementation, and then the return could decrease by 10% per year for the rest of the years QUESTION 30 MARKS Given formation provided in the opening cose above Complete the table below by selecting the appropriate corresponding answer FOR THE FIELDS/BOXES NUMBERED 1 TO 30 and calculate the NPV (BOX 30) of Project 1. In your calculation give and use the Discount Factor thane estion Completion Status: the remaining years. Project 2 was to cost R800 000, this amount excludes the R100 000 which was used to pay for labour consultants who a with the interviews. The additional cost was that of training of the PAs which was about R75 000 in the first year, then the cost was expected to in annually by 10% for the next three years. Project 2 was expected to make a return of 50% of the total development cost after its first Implementation, and then the retum could decrease by 10% per year for the rest of the years, QUESTION [30 MARKS] Given information provided in the opening case above Complete the table below by selecting the appropriate corresponding answer FOR FIELDS/BOXES NUMBERED 1 TO 30 and calculate the NPV (BOX 30) of Project 1. In your calculation, give and use the Discount Factor rounded off to 3 decimal places. Monetary values must be given to the nearest cent and select the nearest answer from the provided op 1151 PROJECT 1 YEAR O YEAR 1 YEAR 2 YEAR 3 YEAR 4 TOTAL BENEFITS 1 2 3 4 5 6 COST 7 8 9 10 11 12 Net Cash Flow 13 14 15 16 17 18 Discount Factor 19 20 21 22 23 Discounted Cash Flow 24 25 26 27 28 29 ORI TE $ 24C ace Remaining Time: 2 hours 28 minutes, 09 seconds. Question Completion Status: A 16310125 B 1 c375750 4 D. 600000 5 E 432388 6 F. 0.763 G. 467500 8 H. 540000 437400 v 10 11157625 11 K 2063400 12 L 486000 13 M 110250 14 N. 199276.41 15 0.435000 24C A40 w 3:22 PM 3/24/2022 ac
