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Exam (elaborations)

IFP3701 Assignment 6 Portfolio 2026

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IFP3701 Assignment 6 Portfolio 2026

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MAC2602
ASSIGNMENT 1
DUE DATE: 8 SEPTEMBER 2026

, MAC2602 ASSIGNMENT 1 2026

DUE 8 SEPTEMBER 2026




PART A: Capital Investments & Capital Budgeting Techniques (44 marks; 53
minutes)


A1: Economic, Social, Environmental, and Governance Factors (16 marks)

Economic Factors:

Fuel price volatility - The war in the Middle East causes fuel price instability,
increasing distribution costs and affecting profitability.
Commodity price decline - Reduced maize prices affect cost of sales, potentially
improving gross profit margins.
Geopolitical uncertainty - Affects business confidence, consumer spending, and
operational planning.
Interest rate risk - The 11% long-term loan exposes PG to interest rate fluctuations.




(Study Unit 1 & 3 - Stakeholder analysis and environmental factors; Strategy concepts)




Social Factors:

Labour union concerns - Unions raised issues about hiring illegal immigrants,
creating reputational and operational risks.
Employment practices - Prioritising local hiring improves community relations but
may increase labour costs.

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