accounting

Project A Project B Project C R960 000 R1 060 000 R860 000 5 years 5 years 5 years R40 000 0 R60 000 R R R 204 000 100 000 52 000 152 000 100 000 116 000 128 000 100 000 128 000 104 000 100 000 140 000 40 000 100 000 5 80 000 The company estimates that its cost of capital is 15%. Depreciation is calculated using the straight-line method. Ignore taxes. (6 marks) 5.2 Calculate the total production costs for April and May based on the production requirements for each month. Initial cost Expected useful life Expected scrap value Expected net profit: End of year 1 2 Project A Project B Project C R960 000 R1 060 000 R860 000 5 years 5 years 5 years R40 000 0 R60 000 R R R 204 000 100 000 52 000 152 000 100 000 116 000 128 000 100 000 128 000 104 000 100 000 140 000 40 000 100 000 5 80 000 The company estimates that its cost of capital is 15%. Depreciation is calculated using the straight-line method. Ignore taxes. (6 marks) 5.2 Calculate the total production costs for April and May based on the production requirements for each month. Initial cost Expected useful life Expected scrap value Expected net profit: End of year 1 2