straight - line basis . Fixed ( non- current ; assets are expected to have a life span of 5 years and will be depreciated on a Profits are taxed at the normal company tax rate of 28% . Assets will be sold after 5 years . Given the fact that sales in Westfield Parramatta are expected to be higher ( and thus assets are exposed to more wear and tear ) . THE COFFEE CLUB expects to get less for Westfield Parramatta's assets than those of Sunshine Marketplace . It is thus expected that Westfield Parramatta's assets could be sold after 5 years for $18 000 whereas Sunshine Marketplace's could be sold for $20 000 . Therefore , you are required to : Calculate the Initial Investment Outlay ( I10 ) of the new franchises . Note : it will be the same for ( B ) Westfield Parramatta and Sunshine Marketplace . Clearly show your calculations . ( 4) |0 ) Calculate the Operating Cash Flows ( DCFS) for both locations for the first year . Clearly show all calculations .* ( 6 ) (C ) Calculate the terminal Cash Flow IT OF ; in the last year for both locations . Clearly show your calculations . Assume that the capital gain tax applies at a rate of 25% . (7 ) (P ) What is the optimal location for the new THE COFFEE CLUB franchise ? The required rate of return is 15%/6 . Motivate your answer using the NPV and IFIF technique . ( 1 1 ) SECTION B CRYPTOCURRENCIES AS AN ALTERNATIVE TO RAISING CAPITAL As a financial manager , you have considered the possibility of using cryptocurrencies to raise capital . However , senior management requires you to conduct more research into this modern technique of capital budgeting . Therefore , you are required to discuss the benefits and drawbacks of using cryptocurrencies as an alternative strategy in raising funds . In your discussion , provide some insights on your opinion on the future of cryptocurrencies in the field of finance . ( 10 )