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Costing, Financial models \& Budgeting 1. Discuss "WACC" under the following headings: [9] a. Explain what it is b. How is it determined? c. What is it used for? 2. What is working capital? Give an example. [8] 3. What is SIB? Give examples of three types of SIB [12] 4. Explain Variable Cost by means of an example (Don't use the examples in the lecture notes) [7] 5. Name six capital cost components for new equipment and explain each shortly [14] 6. Explain budgeting risks by means of three types of risks [9] 7. Calculate the NPV of the set of cashflows below by using the formula given in the lecture notes. Do not use Excel to calculate the NPV. Use your company's WACC as the discount rate. Note that the first year must not be discounted. Please show all your calculations. [20] 8. Determine the IRR for the cashflow in Question 8 using Excel and explain what your. answer means. [12]