FIN3701 Assignment 1 Semester 1 2026 (Fully Answered) - Due 30 March 2026

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


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