Powers Ltd$.,$ a manufacturer of various power tools wants to estimate its funding requirements for the coming financial year. In the current financial year the company achieved sales of R$100$ million on assets worth R$1000$ million and liabilities of R$500$m$.$ It$$s resulting net profit margin was $10\%$ with no dividend being paid as the company is in a high growth phase. All assets and liabilities are considered spontaneous and increase in line with sales. It is expected that sales will grow by $20\%$ in the coming year. Assets are however only utilized up to $90\%$ of total capacity and the spare capacity can be used first before new capacity is installed.

Required:

Determine the Rand value of the spare asset capacity.

a$.$

R$50$ million

b$.$

R$100$ million

c$.$

R$1000$ million

d$.$

R$10000$ million