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Mia Limited is considering upgrading its plant to expand it client base. The financial details of the investment proposal are as follows: Cost of plant
Mia Limited is considering upgrading its plant to expand it client base. The financial details of the investment proposal are as follows: Cost of plant R4 500 000 Import duty R 700 000 Installation cost R 250 000 Net cash flows Year 1-8 R1 500 000 per annum (excluding residual value) Residual/scrap value R1 100 000 The company uses straight-line depreciation. The cost of capital for projects of similar risk is 18%. Ignore taxation. Required: 1.1 Calculate the investments Accounting
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