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Question 3 Engineering economics [14] 3.1) Analyze the following Financial statement and answer the questions that follow. Financials Income Expenses R300 000,00 Description Revenue COGS

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Question 3 Engineering economics [14] 3.1) Analyze the following Financial statement and answer the questions that follow. Financials Income Expenses R300 000,00 Description Revenue COGS Gross Profit Gross Profit % R200 000,00 R50 000,00 Expenses 1 Wages Telephone and Internet Water and lights Stationary Bank charges Sub Total R10 000,00 R5 000,00 R500,00 R73 500,00 Expenses 2 New colour printer Sub Total R10 000,00 R10 000,00 R116 500,00 Net Profit Net Profit % Complete the financials by filling in the empty spaces that highlighted in yellow. (4) are Substantiate if the new colour printer will be paid from the CAPEX or OPEX budget. (2) Identify any weaknesses with these financials. (2) 3.2) Analyze the following cash flow diagram and answer the subsequent questions. CASH FLOW DIAGRAM R100 000 R100 000 R100 000 R100 000 R180 000 1 -R50 000 R50 000 R50 000 -R150 000 R400 Calculate the total cash inflow (1) Calculate the total cash outflow (1) 3.3) A rental company purchases a new fleet of motor cars at R20 000 000 Annual maintenance costs equal R50 000, while a profit of R100 000 is made each month by hiring out these motor cars. After 2 years, the motor cars are sold for R6 million. 3.3.1) Calculate the return on investment. 3.3.2) Calculate the payback period

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