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Rubble Limited (Rubble) is listed on the JSE. The company has a large chain of various retail outlets, including both high-end and affordabie fashionware, homeware

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Rubble Limited (Rubble) is listed on the JSE. The company has a large chain of various retail outlets, including both high-end and affordabie fashionware, homeware and fumiture. Rubble is considering opening a varlety of new stores in a new shopping complex being Ballito. Below is infomphin Coast in South Africa. The Dolphin Coest is located just narth of Cost of store insteiltotions pertaining to the expected cash fows: Revenue from stors Vanlable Costs of the storss 8t00000 por ann Fixed Cost - R50 000 (rental of the floor space, there is an innationary clause in the contract) Depreciation of store installations (leashald improvements) - R312 500 Useful life of leasehold improvements - 15 years SARS Allowance - 10 years Net cash flow expected after 5 years - R175 000 after tax as at the end of year 5 . CPI-6\% The nominal WACC rate is 15%. Additional Information: - The tax rate is 28% or - Any assessed loss can be used on other projects. (15) 3.2 With reference to the article below, discuss whether Rubble should invest in this new shopping complex. Your answer should also include an analysis of the geographical location of the new investment. This activity also requires you to consider the surrounding areas and whether such investment would be viable

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