Please assist in answering all questions below

Questions 1220 refer to the problem below. Solar-Tex (Ltd), South Africa, is a specialist manufacturer of solar panels. In seeking to expand its operations, 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 NPV for setting up the new division at home is: A. R 3610000 B. R 2670000 C. R3610000 D. R3240000 QUESTION 16 The annuity factor for setting up the new division at home is: A. 5.76 B. 5.20 C. 6.13 D. 5.91 QUESTION 17 The annual cash flow for the acquisition (in ) is: A. 3500000 B. 3000000 C. 2000000 D. 2500000 QUESTION 18 The estimated amount of money made over the 9-year period (in ) for the acquisition is: A. 15500000 B. 14400000 C. 14800000 D. 13200000 QUESTION 19 The NPV for the acquisition (in Rand) is: A. 59800000 B. 2400000 C. 55200000 D. 51270000 QUESTION 20 What should be the final decision? A. Reject both projects. B. Set-up new division at home. C. Accept Dutch acquisition. D. Accept both projects