FORMATIVE ASSESSMENT $1$ Read the information and answer ALL the questions that follow. Question $1$ Apple Limited, South Africa, is a specialist manufacturer of security doors and gates. In seeking to expand its operations, it could acquire a Dutch subsidiary company, Purple Guard, or set up a new division in its home market. The relevant figures for these two options are: Additional information: The project is expected to last for $10$ years. Apple Limited, current cost of capital is $13\%.-$The Dutch inflation is expected to be below the South African inflation by $2\%$ per year, throughout the life of this investment. The current exchange spot rate is R$20$ to the Euro $().$ Required: $1\mathrm{.}1$ Make all necessary calculations for the two options and advise Apple Limited on the viability of two opportunities.