assist me by answering the questions below SECTION A [100 MARKS] Answer ALL the questions in this section. QUESTION ONE 1.1 1.Your parents set up a trust fund for you 10 years ago that is now worth R19 671,51. If the fund earned 7% per year, how much did your parents invest? (5 marks) 1.2 Suppose you are offered an investment that will allow you to double your money in 6 years. You have R10 000 to invest. What is the implied rate of interest? (7 marks) 1.3 Suppose you have a 1-year old son and you want to provide R75 000 in 17 years towards his college education. You currently have R5000 to invest. What interest rate must you earn to have the R75 000 when you need it? (7 marks) 1.4 Suppose you want to buy a new house. You currently have R15 000 and you figure you need to have a 10% down payment plus an additional 5% of the loan amount in closing costs. If the type of house you want costs about R150 000 and you can earn 7,5% per year, how long will it be before you have enough money for the down payment and closing costs? (6 marks) 1.4 QUESTION TWO Zoey Limited is considering upgrading its plant. The financial details of the investment proposal are as follows: Cost of plant R3 600 000 Import duty R 900 000 Installation cost R 300 000 Net cash flows Year 1-10 R1 400 000 per annum (excluding residual value) Residual/scrap value R1 200 000 The company uses straight-line depreciation. The cost of capital for projects of similar risk is 18%. Ignore taxation. Calculate the investment's Accounting Rate of Return (ARR). (4 marks) 2.1 Briefly explain if the ARR is acceptable or not based on a target rate of return of 40%. (3 marks) 2.2 Assume a payback period of 4 years. Determine the payback period and state if the investment is acceptable or not. (5 marks) 2.3 Calculate and comment on the viability of the proposed investment based on the net present value (NPV) method. (8 marks) 2.4 Discuss whether the advantages of using the NPV method outweigh the disadvantages (5 marks) 2.5QUESTION THREE INFORMATION Blaze Manufacturers plans to start 'Project Supreme' and the following information is applicable to the project for the first financial year: The estimated sales for the financial year are 2000 units with a selling price of R800 per unit. The variable manufacturing cost per unit and sales commission per unit are R420 and R60 respectively. Furthermore, Fixed manufacturing overheads are R330 000 and fixed administrative expenses are R150 000. REQUIRED Study the information provided below and answer the following questions independently: 3.1 Calculate the expected total Marginal Income and Net Profit/Loss. (6 marks) 3.2 Calculate the break-even quantity. (4 marks) 3.3 Calculate the break-even value, if the fixed costs are 10% greater than anticipated. (5 marks) 3.4 Calculate the number units required to break-even if the selling price is reduced by R40, and sales commission is calculated at 10% of the selling price. (5 marks) 3.5 Suppose Blaze Manufacturers wants to make provision for an increase in advertising by R30 000 and a drop in the selling price by R100 per unit, with the expectation that sales will increase by 400 units. Will profitability improve? Motivate your answer with the relevant calculations. (5 marks) QUESTION FOUR Calculate the value of closing inventory on 31 January 2022 using the: 4.1The following transactions of Hector Limited took place during January 2022 in respect of component J used in production: Stock of component J on hand Issued to production Purchased from supplier Returned to supplier (purchased on 12 January 2022) Issued to production Purchased from supplier Issued to production 150 units @ R24 per unit 110 units 200 units @ R25 per unit 30 units 170 units 140 units @ R26 per unit 130 units First-in-first-out (FIFO) method (10 marks) 4.1.1 Weighted Average Cost Method (10 marks) 4.1.2 Use the information given below to calculate the net wage of H, Kane for the last week of May 2021. (5 marks) INFORMATION H, Kane is employed by Hot- Spur Enterprises. The normal working week is 45 hours. H, Kane worked for 48 hours during the last week of May 2021. She is remunerated at R80 per hour during normal working hours. Overtime is calculated at 1 times the normal rate. The following are her deductions for the week: Medical aid fund R350 Pension fund 8% of the normal wages Income tax R830 Hot- Spur Enterprises contributes the same amount as the employees towards the medical aid fund and pension fund