The relevant figures for these two options are: Set up new division at home Cost of...

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The relevant figures for these two options are: Set up new division at home Cost of setting up premises Cost of machinery Annual sales Annual variable cost Additional head office expenses Existing head office expenses Depreciation: machinery 10% on cost annually Acquisition Acquire shares from existing shareholders Redundancy costs Annual Sales Annual variable costs Annual fixed costs Consultants fees Rand 22 440 000 8 700 000 33 000 000 14 050 000 1 300 000 3 220 000 870 000 Euro 28 000 000 5 000 000 39 000 000 18 000 000 10 000 000 750 000 Additional information: -The project is expected to last for 7 years. - DD Limited, current cost of capital is 10%. - The French inflation is expected to be below the South African inflation by 1% per year, throughout the life of this investment. -The current exchange spot rate is R24.50 to the Euro (). Required: Compute the necessary calculations and advise DD Traders Limited if it is worth investing in neither, in one or both of these two opportunities. (25 Marks) The relevant figures for these two options are: Set up new division at home Cost of setting up premises Cost of machinery Annual sales Annual variable cost Additional head office expenses Existing head office expenses Depreciation: machinery 10% on cost annually Acquisition Acquire shares from existing shareholders Redundancy costs Annual Sales Annual variable costs Annual fixed costs Consultants fees Rand 22 440 000 8 700 000 33 000 000 14 050 000 1 300 000 3 220 000 870 000 Euro 28 000 000 5 000 000 39 000 000 18 000 000 10 000 000 750 000 Additional information: -The project is expected to last for 7 years. - DD Limited, current cost of capital is 10%. - The French inflation is expected to be below the South African inflation by 1% per year, throughout the life of this investment. -The current exchange spot rate is R24.50 to the Euro (). Required: Compute the necessary calculations and advise DD Traders Limited if it is worth investing in neither, in one or both of these two opportunities. (25 Marks)