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a.Tholo Limited plans to expand its operations and has a large unused warehouse space in the Gaborone West Industrial area. In capital budgeting terms, discuss

a.Tholo Limited plans to expand its operations and has a large unused warehouse space in the Gaborone

West Industrial area. In capital budgeting terms, discuss whether this is a sunk cost or an opportunity

cost. (4 marks).

b. Discuss the reasons why a company will usually issue a zero-coupon bond and the attractions of a zero-coupon

bond to an investor. (10 marks)

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