1 a) Differentiate between Negotiated Transfer pricing and pricing. Explain ONE advantage and disadvantage of each. b) A company has reported operating profits of M28 million. Market related Transfer Cost bage (6marks) This was after charging M12 million for the development and launch costs of a new product that is expected to generate profits for 4 years. Taxation is paid at the rate of 35% of the operating profit. The company is financed by 65% equity and 35% debt. The pre-tax cost of debt is 9% and cost of equity 12% The company's non-current asset value is M60 million, and the net current assets have a value of M33 million. The replacement cost of the non-current assets is estimated to be M85 million. Required (6marks) a) Calculate the company's Economic Value Added (EVA) for the period. b) Discuss TWO advantages of Economic Value Added One of each over Return on Investment and Residual Income. (4marks