QUESTIONS (20 Marks) REQUIRED Answer the questions based on the information suppied. 5.2 REQUIRED Use the informalion provided below to calculate the cast of the can expressed to two decimal places) lo SUV Limited (3 marks) INFORMATION SUV Limited made an aplication to Kenbark for a long-term ban to france its expansion Kertark approved a a loan af R500 000 at a cost of 18X, SUV Limild's margrallax rale is 28% 5.3 5.1 REQUIRED Use the information provided below to calculate the following. Where applicable, use the four-decirral present value tables provided in APPENDICES 1 and 2 that appear ater QUESTIONS. 5.1.1 Accounting Rale of Relum (an initial investment of Machine A lepressed to be deciral places) 5.12 Net Present Value of each machine (51 5.1.3 Interrel Rate of Return of Machine Blexpressed to two decimal places) uang interpolation 151 INFORMATION Avery Manufacturers inlends purchasing a new machine and has a choice between two machines viz. Machine A or Machine B. The cost of each machine is R3 000 000, with each having an expected useful life of five years. Machine A is expected to have a scrap value of R200 000. No scrap value is spected for Machine B. Avery Manufacturers uses the straight-ine mettad of deprecation. The cost of capital is estimated at 16% REQUIRED Use the information provided below to calculate the cost of the preference share financing expressed to two decimal places (3 marks) INFORMATION SUV Limiled inlends issuing 15% preference shares with al an issue price of R200 each. The folation costs are estimalel al Reper share TOTAL: 100 END OF PAPER Machine A is expected to generale the folcwing net pronts over its use lire Year 1 R340 000 Year 2 R280 COC Year 3 R560 000 Year 4 R340 000 Years R ECCOO I Machine B is expected to generale a nel profil of R340 000 per year over the pre-year period, Ignore taxes QUESTIONS (20 Marks) REQUIRED Answer the questions based on the information suppied. 5.2 REQUIRED Use the informalion provided below to calculate the cast of the can expressed to two decimal places) lo SUV Limited (3 marks) INFORMATION SUV Limited made an aplication to Kenbark for a long-term ban to france its expansion Kertark approved a a loan af R500 000 at a cost of 18X, SUV Limild's margrallax rale is 28% 5.3 5.1 REQUIRED Use the information provided below to calculate the following. Where applicable, use the four-decirral present value tables provided in APPENDICES 1 and 2 that appear ater QUESTIONS. 5.1.1 Accounting Rale of Relum (an initial investment of Machine A lepressed to be deciral places) 5.12 Net Present Value of each machine (51 5.1.3 Interrel Rate of Return of Machine Blexpressed to two decimal places) uang interpolation 151 INFORMATION Avery Manufacturers inlends purchasing a new machine and has a choice between two machines viz. Machine A or Machine B. The cost of each machine is R3 000 000, with each having an expected useful life of five years. Machine A is expected to have a scrap value of R200 000. No scrap value is spected for Machine B. Avery Manufacturers uses the straight-ine mettad of deprecation. The cost of capital is estimated at 16% REQUIRED Use the information provided below to calculate the cost of the preference share financing expressed to two decimal places (3 marks) INFORMATION SUV Limiled inlends issuing 15% preference shares with al an issue price of R200 each. The folation costs are estimalel al Reper share TOTAL: 100 END OF PAPER Machine A is expected to generale the folcwing net pronts over its use lire Year 1 R340 000 Year 2 R280 COC Year 3 R560 000 Year 4 R340 000 Years R ECCOO I Machine B is expected to generale a nel profil of R340 000 per year over the pre-year period, Ignore taxes
