QUESTION 2 (22 marks) Voltage Ltd. ("Voltage") is a South African motor vehicle manufacturer located in the Eastern Cape province. The entity has a 28 February financial year-end. Since the 20th century, South African companies, including Voltage which was established in 1976, have been assembling vehicles. Due to factors such as the increasing fuel price as well as the international need for climate change and stewardship of a healthy natural environment, Voltage's directors recently started considering manufacturing electronic vehicles ("EVs") and including them as a product that Voltage sells. According to Voltage's initial evaluations, the EV product line will require an initial capital investment of R52 million and will generate an expected return of 34.9%. Should Voltage's directors approve the new EV product line, the current funding available will be utilised to finance the new product line (EVs) and, consequently, the capital structure will remain as follows: Assume a South African income tax rate of 28% applies to companies. 5 HFMN230-1-Jul-Dec2022-SA1-ES-V2-28062022 Required: 2.1. Calculate Voltage Ltd.'s weighted average cost of capital. (19 marks) 2.2. Discuss whether Voltage Ltd.'s board of directors should approve or decline the electronic vehicle product launch. Motivate your answer. (3 marks) Round to two decimals where required. QUESTION 2 (22 marks) Voltage Ltd. ("Voltage") is a South African motor vehicle manufacturer located in the Eastern Cape province. The entity has a 28 February financial year-end. Since the 20th century, South African companies, including Voltage which was established in 1976, have been assembling vehicles. Due to factors such as the increasing fuel price as well as the international need for climate change and stewardship of a healthy natural environment, Voltage's directors recently started considering manufacturing electronic vehicles ("EVs") and including them as a product that Voltage sells. According to Voltage's initial evaluations, the EV product line will require an initial capital investment of R52 million and will generate an expected return of 34.9%. Should Voltage's directors approve the new EV product line, the current funding available will be utilised to finance the new product line (EVs) and, consequently, the capital structure will remain as follows: Assume a South African income tax rate of 28% applies to companies. 5 HFMN230-1-Jul-Dec2022-SA1-ES-V2-28062022 Required: 2.1. Calculate Voltage Ltd.'s weighted average cost of capital. (19 marks) 2.2. Discuss whether Voltage Ltd.'s board of directors should approve or decline the electronic vehicle product launch. Motivate your answer. (3 marks) Round to two decimals where required