In addition to the above, the following information is available:

Interim dividends paid in $2022$ amounted to R$456000.511800$ shares were in issue during $2022.$ The

market price per share was R$17\mathrm{.}25$ on $31$ December $2022.$

During $2022$ the management of Capri Limited considered the acquisition a new machine for purchase and

installation during the second quarter of $2024$ with a desired rate of return of $15\%.$ The machine will cost

R$6000000$ excluding import duties of R$250000$ and will have a useful life of five years. The machine is

expected to increase cash inflows by R$2000000$ per year but cash expenses will increase by R$300000$ per

year. Depreciation is calculated using the straight$-$line method.

At the end of December $2022$ the company was approached by a group of previously disadvantaged women

who had opened a service station on $01$ July $2022,$ selling only diesel. They needed assistance in improving

the financial performance of the service station. Diesel was sold at R$16$ per litre and the variable costs totalled

R$14$ per litre. The fixed costs were R$135000$ per month. After six months of opening, the sales achieved was

$540000$ litres and the sales were almost the same each month. To improve the performance, the Capri

Limited considered the following proposals: