project Accounting

estion Completion Status: the remaining years. Project 2 was to cost R800 000, this amount excludes the R100 000 which was used to pay for labour consultants who a with the interviews. The additional cost was that of training of the PAs which was about R75 000 in the first year, then the cost was expected to in annually by 10% for the next three years, Project 2 was expected to make a return of 50% of the total development cost after its first implementation, and then the return could decrease by 10% per year for the rest of the years QUESTION 130 MARKS] Given information provided in the opening case above: Complete the table below by selecting the appropriate corresponding answer FOR FIELDS/BOXES NUMBERED 1 TO 30 and calculate the NPV (BOX 30) of Project 1. In your calculation, give and use the Discount Factor rounded off to 3 decimal places. Monetary values must be given to the nearest cent and select the nearest answer from the provided op [151 PROJECT 1 YEAR O YEAR 1 YEAR 2 YEAR 3 YEAR 4 TOTAL BENEFITS 1 2 3 4 S 6 COST 7 8 9 10 11 12 Net Cash Flow 13 14 15 16 17 18 Discount Factor 19 20 21 22 23 Discounted Cash Flow 24 25 26 27 28 29 ORA 12 3 24C 134970 outline Radboard Leon Student Email TCUT N CAPE PENINSULA U.. SOAP2DAY Remaining Time 2 hours. 28 minutes, 26 seconds. Question Completion Status: The ABC International Bank which is a banking organisation headquartered in South Africa and with operating branches in all the nine provinces of South Africa and across the world has been struggling to get its investment options in the right portfolios, especially when it comes to its international operations. To improve its investment options, the Bank has identified two projects from which one needs to be selected Project 1 was intended to improve its dients' banking experience by ensuring that all the customers that are registered as business organizations receive a mobile banking device that will allow their non-cash carrying customers to use their debit or credit cards to pay for goods and services. This project was also in direct line with the bank's strategy of satisfying as customers and increasing its customers' base Project 2 was intended to support its executives by giving them additional personal assistants (PAs) when travelling across South Africa and abroad. This project was also intended to improve the marketing position of the organisation and improve the communication between the executives and the head office The two projects were to be selected by combining different project selection methods, only the financial data are made available to you and the bank wants you to help in the selection process. It is important to note that the company's culture is to give priority to projects that have the highest return on capital invested. Both projects are subject to a 7% discount rate Project 1 development cost is projected to amount to R1 200 000 this amount includes R250 000 which is to be used for initiation meeting with the developers. To maintain the devices, the organisation was expected to spend R100 000 in the first year of the implementation, then maintenance costs are expected to increase annually by 5% for the next three years. Project 1 was expected to make a retum of 50% of the total development cost in its first year after implementation, and then the return would decrease by 10% per year fol each of the remaining yours Project 2 was to cost R800 000 this amount excludes the R100 000 which was used to pay for labour consultants who assisted with the interviews. The additional cost was that of training of the PAs which was about R75 000 in the first year, then the cost was expected to increase amualy by 10% for the next three years Project 2 was expected to make a return of 50% of the total development cost after its first year of Implementation and then the return could decrease by 10% per year for the rest of the years QUESTION [30 MARKS Giver information provided in the opening case above Complete the table below by selecting the appropriate corresponding answer FOR THE FIELDS BOXES NUMBERED 1 TO 30 and calculate the NPV (BOX 30) of Project 1. In your calculation give and use the Discount Factor 0 1 24C A 40 team that G 3:22 PM 3/24/2022 52 2 points R100,000 as invested in a project, and a 10% discount is to be used. Anticipated returns in future years are as follows: Year 1: R30,000 Year 2 R30,000 Year 3 R40,000 Year 4 R50,000 Year 5 R50,000 Calculate the NPV (Choose the nearest answer) 38000 47000 57000 43000 Moving to another question will save the response o n O 3 G ace 24C A00 Question 2 of 11 3:21 PM 24/2072