Marcelo Limited is a company based in South Africa. They are specialist who manufacture blankets. They are seeking to expand its operations, it has the opportunity to acquire a French subsidiary company, Silva Co., or set up a new division in its home market. The relevant figures for these two options are: Set up new division at home Rand Cost of setting up premises 90 000 000 Cost of machinery 11 000 000 Annual sales 43 000 000 Annual variable cost 9 600 000 Additional head office expenses 800 000 Existing head office expenses 600 000 Depreciation 12 500 000 Acquisition Euro Acquire shares from existing shareholders 30 000 000 Annual sales 11 000 000 Annual variable costs 6 000 000 Annual fixed costs 4 000 000 Consultant fees 430 000 Additional information: The project is expected to last for 10 years. Marcelo Limited, current cost of capital is 12%. The French inflation is expected to be below the South African inflation by 1% per year, throughout the life of this investment. The current exchange spot rate is R20 to the Euro (). Required: 2.1 Make all necessary calculations for the TWO (2) options. (22 marks) 2.2 Advise Marcelo Limited on the viability of these TWO (2) opportunities.