a. By applying shareholder value analysis, predict the value that would have accrued to the City of Johannesburg if the city had not entered into an arrangement given the credible information that the City of Johannesburg would have collected parking fees the following year of R6 million (net of operating costs), and those fees would have grown at a steady 3% per annum for the next 30 years. (15)

b. Using 5% per annum returns to value the payments that the city was set to receive in this deal, do you think that the city made the correct decision? Why or why not? (15)