Hlubi Ltd. has provided the following forecasted information:

Sales = R14 million

Costs = R4 million

Tax Rate = 0.35

(a) If the company will pay R2.8 million in estimated taxes, what will their depreciation expense be? Show your workings.

(b) Use two different methods to calculate the company's OCF. Show your workings.

(c) Hlubi Ltd recently purchased new equipment at a cost of R750 000. What is the depreciation expense for year 4 if the equipment is depreciated at a rate of 15% per annum using the reducing balance method?