Please assist in answering all questions below

QUESTION 12 Questions 12 - 20 refer to the problem below. Solar-Tex (Ltd), South Africa, is a specialist manufacturer of solar panels. In seeking to expand its operatio it is given the opportunity to acquire a Dutch subsidiary company, Synergy International, or set up a new division in its home market. The relevant figures for these two options are given below: Set up new division at home: Rand Cost of setting up premises R 15000000 Cost of machinery R 8000000 Annual sales R 7500000 Annual variable cost R3000000 Additional head office expenses R 1000000 The project is expected to last for 9 years. Solar-Tex (Ltd), current cost of capital is 11%. Acquisition: Acquire shares from existing shareholders 9000000 Redundancy costs 3000000 Annual Sales 10500000 Annual variable costs 4500000 Annual fixed costs 3500000 Additional information: The Belgian 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 R 23.00 to the Euro (). The annuity factor for setting up the new division at home is: A. 6.79 B. 4.71 C. 5.16 D. 5.54 QUESTION 13 The annual cash flow for setting up the new division at home is: A. R3000 000 B. R 3500000 C. R4000000 D. R3200000 QUESTION 14 The estimated amount of money made over the 9-year period for setting up the new division at home A. R 19390000 B. R 20450000 C. R 18320000 D. R 19860000