QUESTION 4 (20 Marks) Note: Where applicable use the present value tables (Appendix 1 and Appendix 2) that appear after question 5. REQUIRED Study the information provided below and determine whether Cannor Ltd should purchase or lease the machine, by using the net advantage of leasing (NAL) method. INFORMATION Cannor Ltd wants to purchase a new machine for one of its factories. The cost of the machine is R800 000 and its useful life is expected to be four years. No scrap value is anticipated. Cannor Ltd has the option of borrowing the money at 20% to purchase the machine. Maintenance costs are estimated at R32 000 per year. If it is leased, the lease payments will be R320 000 per year, payable at the end of each of the next four years. The tax rate is 30%. QUESTION 5 (20 Marks) 5.1 Much of the fraud and corruption that is so prevalent today is the result of a breakdown of ethics and values. What do you recommend that organisations do to manage ethics within their institutions? (8 marks) 5.2 "Good corporate governance should be the ethos of every organisation. Provide a critical discussion of this statement. (6 marks) 5.3 Discuss the role played by the King IV report in addressing the issues of leadership and responsible corporate citizenship. (6 marks) END OF PAPER