Question 1 Trelimax (Ltd), South Atrica. is a specialist manufacturer of 'roller door. In seeking to expand its operations, it has the opportunity to acquire an American subsidiary company, Door Dynamics or set up a new division in South Africa. The relevant figures for these two options are as follows Set up new division at home (RSA) Rands osts ost of premises achinery nnual Sales nnual variable cost dditional head office expense 0 400 2 000 000 Existing head office expenses epreciation: machinery (10% 200 000 Acquisition (Door Dynamics) Rands Acquire shares from existing shareholders 10 000 osts edundancy cost nnual Sales nnual variable cost nnual fixed cost onsultation fees 5 800 000 Additional informatio Project life is 10 years Trellmax current cost of capital is 12% Inflation in the USA is expected to be below the South African inflation by 3% per year throughout the life of the project. . . Assume an exchange rate of R14 to 1 USD Required 1) Make all the necessary calculations for the 2 options 2) Advise Trellimax on the viability of the 2 options