FIN2602 Assignment 2 (COMPLETE ANSWERS) Semester 1 2026 - DUE April 2026

FIN2602 Assignment 2 (COMPLETE ANSWERS) Semester 1 2026 - DUE April 2026; 100% TRUSTED Complete, trusted solutions and explanations. For assistance, Whats-App 0.8.1..2.7.8..3.3.7.2... Ensure your success with us.. QUESTION 1 (TIME VALUE OF MONEY) (16 marks) 1.1 Calculate the future value of a R3000 lump sum which is invested today, and which earns simple interest of 10% per annum, over 15 years. (3) 1.2 Calculate the amount of money Tornado Tower would have if he invested R1 200 in his savings account for one year at a rate of 12% per annum simple interest. (3) 1.3 Use information in 2.1 above to calculate how much Tornado Tower will have in his account after two years. (2) 1.4 Calculate the future value of an annuity in which R150 is invested annually and which earns a compound interest at 12% per annum for 15 years. (3) 1.5 Mama Lion will receive R100 000 over 20 years from a retirement annuity. Will this be enough for her with which to retire? Give reasons for your answer. Assume an inflation rate at 10%. (5) QUESTION 2 (BUYING A BUSINESS) (8 marks) Fly High Products has fixed operating costs of R80 000, variable costs of R65 per unit and a selling price of R100 per unit REQUIRED 2.1 Calculate the break-even point in value. (4) 2.2 Calculate the Earnings Before Interest and Tax at 9000 and 11 000 units respectively. (4) Downloaded by Pied Zulu () lOMoARcPSD| FIN2602/ASSIGNMENT 2/2026 2 QUESTION 3 (BUYING A BUSINESS) (6 marks) R R CURRENT ASSETS Enterprise A Enterprise B Cash 0 5 000 Marketable securities 0 5 000 Accounts receivable 0 5 000 Inventory 20 000 5 000 TOTAL CURRENT ASSETS 2 0000 20 000 LESS: CURRENT LIABILITIES Accounts payable 0 5 000 Bills payable 10 000 3 000 Amounts in arrears 0 2 000 Net operating capital 10 000 10 000 REQUIRED: Comment on liquid assets of both enterprises.