Question $1$

$[40$ marks$]$

Sasha Pty Ltd is a small company based in San Diego in the state of California in the United States. Management is considering a rapid expansion of its operations in the near future. The chief financial officer believes that discounted cashflow techniques are the best suited appraisal methods for their new projects. The most recent statement of financial position $($formerlybalance sheet$)$ for Sasha is given below as follows:

Authorised share capital $(15000000$ shares at $50c$ each$)$

S

Issued share capital shares at $50c$

$5000000$

Share premium

$2340000$

Revaluation reserve

$1610000$

Retained income

$4$