FIN3701
ASSIGNMENT 1 (SEMESTER 1)
DUE 30 MARCH 2026
QUESTION 1
1.1 Calculate the initial investment required for the purchase of the new machine
and the two moulds. (4 marks)
ANSWER:
The initial investment includes all costs required to acquire and prepare the assets for
use:
• Machine cost: R120,000
• Moulds (containers + lids): R22,000
• Plastic material for production: R1,200
Total initial investment:
120,000 + 22,000 + 1,200 = R143,200
Answer 1.1: R143,200
1.2 Calculate the initial investment required for the purchase of the new machine
and the two moulds. (4 marks)
ANSWER:
Operating Cash Inflows (Year 1 & Year 2)
Step 1: Calculate Sales and Costs
Disclaimer:
All materials are for study assistance only. We do not condone academic dishonesty. Use at your own risk.
We are not liable for any consequences arising from misuse.
Redistribution, resale, or sharing without permission is prohibited.
ASSIGNMENT 1 (SEMESTER 1)
DUE 30 MARCH 2026
QUESTION 1
1.1 Calculate the initial investment required for the purchase of the new machine
and the two moulds. (4 marks)
ANSWER:
The initial investment includes all costs required to acquire and prepare the assets for
use:
• Machine cost: R120,000
• Moulds (containers + lids): R22,000
• Plastic material for production: R1,200
Total initial investment:
120,000 + 22,000 + 1,200 = R143,200
Answer 1.1: R143,200
1.2 Calculate the initial investment required for the purchase of the new machine
and the two moulds. (4 marks)
ANSWER:
Operating Cash Inflows (Year 1 & Year 2)
Step 1: Calculate Sales and Costs
Disclaimer:
All materials are for study assistance only. We do not condone academic dishonesty. Use at your own risk.
We are not liable for any consequences arising from misuse.
Redistribution, resale, or sharing without permission is prohibited.
