I am struggling with this two questions. please help
Question 2 (28 marks) Namibia Food Processing Limited ("NFP") produces canned food products for the local market. To ensure the company remains relevant and profitable the company endeavors to sell high quality products. The following information relates the costs they incurred in the month of August 2020 to ensure quality products. Cost Amount (N$) Cost of scrapping faulty goods 12 400 Cost of reworking substandard products discovered in the process 1 800 Cost of sending machine operators for a two week quality training course 9 800 Cost of recalling products 16 000 Cost to confirm supplier's quality accreditation 600 Finished product inspection in the warehouse 7 400 Inspection to detect faulty products 11 400 Legal fees related to product recall 5 800 Replacement of faulty products returned by customers 10 000 Page 15 of 16 Requirement Mark 2.1 Prepare a cost of quality report to be used by NFP management in pursuing quality products. 26 2.2 Comment of the company's commitment to quality products, 2 Total 28 Question 3 (33 marks) Rocky Crest Project Development Lid ("RCPD") is a Namibian company that earns revenue from undertaking various projects. Currently the company is assessing the viability of three projects that have been presented to them. The three project have the following details: Project 1 Project 2 Project 3 (NSOOO) (NSOOD) (NSODO) Initial investment 400 450 350 Incremental profits: Year 1 20 40 (20) Year 2 40 40 40 Year 3 60 40 60 Year 4 40 40 80 Year 5 20 40 30 It is company policy to depreciate non-current assets using the straight line method. The company's cost of capital is 10%. Requirement Mark 3.1 Calculate the payback of project 1 7 3.2 Calculate the present value of project 2 3.3 Calculate the Internal rate of return of project 3 10 RCPD has another fourth project that they recently got an award for. The project is projected to sell 2 000 units at a selling price of N$100. The variable costs will be N535 per unit. The net present value of this project at a cost of capital of 10% is N$42 700 while the initial outlay is N$450 000. Determine the sensitivity of this 3.4 project to the change in the following project variables: 8 Initial investment Sales volume Sales price wv Variable costs N. B. Where necessary, show all the workings Total 33 Page 16 of 16