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an annual salary of R835000 as a professor. He managed to save R1862000 in his provident fund and plans to use it to finance

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an annual salary of R835000 as a professor. He managed to save R1862000 in his provident fund and plans to use it to finance the purchase of pre and set up a small electricity generating plant. If he left the money in the provident fund he could have earned a 9% return p.a. on his money. Andy's annual expenditure for the small electricity generating plant is as follows: Lease on premises Lease of 1 turbine generator Infrastructure Maintenance expenses Coal supplies Coal Transportation & storage cost Staff salaries Other expenses 1525000 505000 602000 867000 119000 1525000 91000 Andy's power company managed to generate 42 MW of electricity per year which he sells to the local municipality for R6585000. You are required to calculate the following: You must follow ALL these instructions Do not include the rand sign Do not put spaces anywhere in your answer Do not show any decimal places or cents (eg 410000 eg 265235 e.g. 1425365) The annual accounting cost is R

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