Identify and briefly discuss three environmental, ethical, social or governance factors which are

eminent from the given scenario that VolleyMasters $($Pty$)$ Ltd should consider which may affect their operations. $(8)$

Calculate the internal rate of return $($IRR$)$ of the new manufacturing machine. Interpolate between $15\%$ and $18\%.$ Firstly, show your calculations of Present Values $($PV$)$ and Net Present Values $($NPV$)$ at $15\%$ and at $18\%$ before showing how you used the interpolation formula to calculate the IRR$-$effective cost. $(9)$

$($i$)$ Determine the effective interest rate for the suggestion of Mr$.$ Float Serve. Use the mathematical formulae method and information given in this regard. $(3)$

$($ii$)$ Based on your calculations in $($b$)$ and c$($i$)$ and information in the scenario, recommend

and motivate which investment option should be chosen. $(2)$

For effective interest rate calculations, work to four decimals and round only your final answer to two decimals.

$($d$)($i$)$ Calculate the new machine$$s payback period. Show all detailed workings. $(4)$

$($ii$)$ Based on $($i$)$ above, advise management if they should invest in the new machine or not. $(1)$