Roll-on (Ltd), South Africa , 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) Costs Rands(millions) Cost of premises 30. 400 Machinery 22. 000 Annual Sales 16. 000 Annual variable cost 5. 000 Additional head office expense 1. 000 Existing head office expenses 0. 500 Depreciation: machinery (10%) 2 .200 Acquisition (Door Dynamics) Costs Rands(millions) Acquire shares from existing shareholders 10. 000 Redundancy cost 2. 500 Annual Sales 18.000 Annual variable cost 9.500 Annual fixed cost 5.500 Consultation fees 5.800 Additional information: Project life is 10 years Roll-on (Ltd) 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.(Hint: use 9% as discount rate) Assume the current rate of R16 to 1 USD. Required 2.1) Make all the necessary calculations for the 2 options. 22) Advise Roll-on (Ltd) on the viability of the 2 options. You are required to use TVM calculations with cash flows and NPV.