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The group should note that this question provides an opportunity to practice the type of questions that may be included in the summative assessment. Therefore,

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The group should note that this question provides an opportunity to practice the type of questions that may be included in the summative assessment. Therefore, each member of the group should attempt the calculations individually and show proof to the other group members. The individual contributions will then be the basis on which the group can come to an agreement on the answers to be submitted. The task should NOT be assigned to one or some group member(s) to complete on behalf of the rest. 2.1 Study the financial statements below and complete the question that follows: 2.2 On 1 January 2019, Thabo deposited R8 485 into a fixed deposit account at 9.5% for 2 years. At maturity, he withdrew R1 450 cash and reinvested the balance of the amount in another account offering interest of 9.75% p.a. How much will he have on 31 December 2022? (5 Marks) 2.3 Siyabonga Incorporated wants to determine the cost of the components in their capital structure. Use the information in the table below to calculate the company's Weighted Average Cost of Capital (WACC). (7 Marks) 2.4 Excel Ltd manufactures office desks at their factory. The fixed cost is R280 450 and their variable cost is R130 per desk. The desks are sold at R450 each. a. How many desks must be produced to break even? (2 Marks) b. How many desks must be produced to make a profit? (1 Mark) c. How many desks must be produced to make a profit of R340 000? (2 Marks) [Sub Total 5 Marks] 2.5 The management of Excel Limited is considering the purchase of new equipment to improve the rate of production in their factory. Income from the new equipment is projected to be R240 000 in the first year, R380 000 in the second year and R535 000 after three years. The initial investment is R640 000. They are evaluating the financial viability of this project and require your advice. The discount rate is 11.5%. a. Calculate the Net Present Value of the project. (6 Marks) b. Advise the organisation whether it should proceed with the project or not. (1 Mark) [Sub Total 7 Marks]

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