Fantasy Limited is a South African based manufacturer of football jerseys. The company is currently investigating two investment projects. The information for which is provided below: Project United Involves extending the companys production facility at Sherwood, Kwa-Zulu Natal. The plant will cost R250 000 000 and is expected to create an additional annual profit of R65 000 000 for the 7 years life of the project. The following expenses were included in the annual profit: Depreciation was calculated on the straight-line method, over the life of project. Share of existing overheads, borne by head office amounting to R50 000 per month. Project City Involves setting up an independent manufacturing facility in Taiwan. The cost of the facility would be an initial outlay 300 000 000 Taiwan dollars. This would result in annual sales of 112 000 000 million Taiwan dollars, for the 7 years of the project. The annual fixed costs and variable costs are 12 200 000 and 9 890 000 Taiwan dollars respectively. Note: Fantasy Limited current cost of capital is 13%. The Taiwanese inflation is expected to exceed the South African inflation by 3% p.a. throughout the life of the project. The current spot rate exchange is 6.2 Taiwan dollars to the Rand. Required: Compute the necessary calculations and advise Fantasy Limited if it is worth investing in neither, in one or both of these two opportunities.