The relevant figures for these two options are: Set up new division at home Cost of setting up premises Cost of machinery Annual sales Annual variable cost Additional head office expenses Existing head office expenses Depreciation: machinery 10% on cost annually Acquisition Acquire shares from existing shareholders Redundancy costs Annual Sales Annual variable costs Annual fixed costs Consultants fees Rand 22 440 000 8 700 000 33 000 000 14 050 000 1 300 000 3 220 000 870 000 Euro 28 000 000 5 000 000 39 000 000 18 000 000 10 000 000 750 000 Additional information: -The project is expected to last for 7 years. - DD Limited, current cost of capital is 10%. - The French inflation is expected to be below the South African inflation by 1% per year, throughout the life of this investment. -The current exchange spot rate is R24.50 to the Euro (). Required: Compute the necessary calculations and advise DD Traders Limited if it is worth investing in neither, in one or both of these two opportunities. (25 Marks)