Elite Academic Institute 068 053 8213 /0717 513 144/ 061 262 1185
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Educating the world for a better change
,Elite Academic Institute 068 053 8213 /0717 513 144/ 061 262 1185
WARNING: PLEASE NOTE THAT PLAGIARISM IS A SERIOUS ACADEMIC
OFFENSE, therefore, the documents provided here including past assignments, tests
and notes are intended SOLELY for educational purposes and as a guide to help
students understand academic concepts and improve their writing skills. These
materials should not be submitted as final work, as doing so may constitute academic
dishonesty. Students are encouraged to use them as reference points, develop their
own understanding and produce original work that reflects their knowledge and critical
thinking. Students are also encouraged to regenerate their own (personalized)
solutions paying particular attention to module contents as prescribed by module
facilitators, lecturers and supervisors. If this document is plagiarized by the users and
fails, ELITE ACADEMIC INSTITUTE should not be rendered accountable since the
contents in this document only give learners a kick-start on what is expected of them
from their areas of specialty.
CAUTION: STUDENTS ARE NOT MANDATED TO USE ALL THE INFORMATION IN
THIS DOCUMENT IN WRITING THEIR ASSIGNMENT
Educating the world for a better change
, Elite Academic Institute 068 053 8213 /0717 513 144/ 061 262 1185
Table of Contents
PART A ...................................................................................................................... 5
A1: ............................................................................................................................. 5
1. Environmental sustainability and environmental compliance: Environmental5
2. Labour relations and industrial action: Social................................................... 5
3. Local employment and skills development: Social ........................................... 5
4. Cross-border operations and economic conditions: Economic ...................... 6
5. Customer credit and liquidity risk: Economic ................................................... 6
6. Acquisition valuation and shareholder value: Governance/Economic ........... 6
7. Corporate governance and regulatory compliance: Governance .................... 7
8. Financial leverage and interest-rate exposure: Economic ............................... 7
A2: NPV calculation ................................................................................................. 7
The R400 000 environmental assessment, R1 million due-diligence fee and R500
000 specialist valuation cost are irrelevant to the NPV because they are costs
incurred as part of the investment decision and, according to the question, are not
capitalised................................................................................................................. 7
The R2 billion loan and 11% interest are also excluded from the project cash flows.
These are financing decisions rather than operating/investment cash flows. The
project's required after-tax return of 10% is used as the discount rate. ............. 7
The 5% accounting depreciation on the machines is a non-cash expense and is
therefore not deducted directly from project cash flows. The relevant tax deduction
is the 10% SARS wear-and-tear allowance. ........................................................... 7
Educating the world for a better change
ademic In
Ac sti
te
tu
Eli
te
W
er
de
a
h
eG M
raduates Ar e
Educating the world for a better change
,Elite Academic Institute 068 053 8213 /0717 513 144/ 061 262 1185
WARNING: PLEASE NOTE THAT PLAGIARISM IS A SERIOUS ACADEMIC
OFFENSE, therefore, the documents provided here including past assignments, tests
and notes are intended SOLELY for educational purposes and as a guide to help
students understand academic concepts and improve their writing skills. These
materials should not be submitted as final work, as doing so may constitute academic
dishonesty. Students are encouraged to use them as reference points, develop their
own understanding and produce original work that reflects their knowledge and critical
thinking. Students are also encouraged to regenerate their own (personalized)
solutions paying particular attention to module contents as prescribed by module
facilitators, lecturers and supervisors. If this document is plagiarized by the users and
fails, ELITE ACADEMIC INSTITUTE should not be rendered accountable since the
contents in this document only give learners a kick-start on what is expected of them
from their areas of specialty.
CAUTION: STUDENTS ARE NOT MANDATED TO USE ALL THE INFORMATION IN
THIS DOCUMENT IN WRITING THEIR ASSIGNMENT
Educating the world for a better change
, Elite Academic Institute 068 053 8213 /0717 513 144/ 061 262 1185
Table of Contents
PART A ...................................................................................................................... 5
A1: ............................................................................................................................. 5
1. Environmental sustainability and environmental compliance: Environmental5
2. Labour relations and industrial action: Social................................................... 5
3. Local employment and skills development: Social ........................................... 5
4. Cross-border operations and economic conditions: Economic ...................... 6
5. Customer credit and liquidity risk: Economic ................................................... 6
6. Acquisition valuation and shareholder value: Governance/Economic ........... 6
7. Corporate governance and regulatory compliance: Governance .................... 7
8. Financial leverage and interest-rate exposure: Economic ............................... 7
A2: NPV calculation ................................................................................................. 7
The R400 000 environmental assessment, R1 million due-diligence fee and R500
000 specialist valuation cost are irrelevant to the NPV because they are costs
incurred as part of the investment decision and, according to the question, are not
capitalised................................................................................................................. 7
The R2 billion loan and 11% interest are also excluded from the project cash flows.
These are financing decisions rather than operating/investment cash flows. The
project's required after-tax return of 10% is used as the discount rate. ............. 7
The 5% accounting depreciation on the machines is a non-cash expense and is
therefore not deducted directly from project cash flows. The relevant tax deduction
is the 10% SARS wear-and-tear allowance. ........................................................... 7
Educating the world for a better change
