DD Limited, South Africa, is a specialist manufacturer of electronic scooters. In seeking to expand its operations, it could acquire a French subsidiary company, AAA Limited, or set up a new division in its home market. The relevant figures for these two options are: Set up new division at home Rand Cost of setting up premises $22440000$ Cost of machinery $8700000$ Annual sales $33000000$ Annual variable cost $14050000$ Additional head office expenses $1300000$ Existing head office expenses $3220000$ Depreciation: machinery $10\%$ on cost annually $870000$ Acquisition Euro Acquire shares from existing shareholders $28000000$ Redundancy costs $5000000$ Annual Sales $39000000$ Annual variable costs $18000000$ Annual fixed costs $10000000$ Consultants fees $750000$ Additional information: $-$ The project is expected to last for $7$ years. $-$ DD Limited, current cost of capital is $10\%.-$ The French inflation is expected to be below the South African inflation by $1\%$ per year, throughout the life of this investment. $-$ The current exchange spot rate is R$24\mathrm{.}50$ to the Euro $().$ Required: Compute the necessary calculations and advise DD Traders Limited if it is worth investing in neither, in one or both of these two opportunities.