MAC3702
Assignment 1 QUIZ Semester 2 2025
Detailed Solutions, References & Explanations
Unique number: 686506
Due Date: 21 August 2025
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, MAC3702-25-S2 Welcome Message Assessment 1
QUIZ
Started on Thursday, 14 August 2025, 9:28 PM
State Finished
Completed on Thursday, 14 August 2025, 10:12 PM
Time taken 43 mins 27 secs
Marks 18.00/20.00
Grade 90.00 out of 100.00
Question 1
Complete
Mark 1.00 out of 1.00
Which of the following statement/s is/are more accurate?
a) Companies with an aggressive working capital policy usually do not have big cash reserves to take advantage of asset
acquisition opportunities that may arise.
b) Debtors’ time lag is an indication of how long it takes the company to convert its resource inputs into cash for
companies that sell on credit.
c) A company’s working capital typically consists of current assets, long term investments and inventory.
d) Increase in sales will have no bearing on company’s working capital requirements.
Choose the correct statement or combination of statements:
a. Statement (a)
b. Statement (b)
c. Statements (c) and (d)
d. Statements (a) and (b)
, Question 2
Complete
Mark 1.00 out of 1.00
Gravel Galore is a company owned by Josaf Mokele and Michale Molefi. They started 10 years ago on a open piece of land
next to Josaf’s home, in their own community to provide sand, stone, gravel, concrete and more to the local people to assist
them to gain access to these types of building material more easily.
They became very successful quite fast and they were forced to start looking for a bigger piece of land. They started to
diversify into more types and sort of material needed for building purposes.
Josaf Mokele and Michale Molefi are starting to investigate the opportunities to buy even bigger land just outside Piet Retief.
They are asking for your assistance in this regards.
You can assume that the discount rate is 9% and cost of capital is 12%.
The project will have the following cash flows:
Year Cash Flow
R’million
0 (200)
1 40
2 60
3 80
4 100
5 120
Calculate the net present value of the proposed Piet Retief project.
a. R 40 390 000
b. R 97 807 000
c. R100 000 000
d. R 66 921 000
Assignment 1 QUIZ Semester 2 2025
Detailed Solutions, References & Explanations
Unique number: 686506
Due Date: 21 August 2025
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, MAC3702-25-S2 Welcome Message Assessment 1
QUIZ
Started on Thursday, 14 August 2025, 9:28 PM
State Finished
Completed on Thursday, 14 August 2025, 10:12 PM
Time taken 43 mins 27 secs
Marks 18.00/20.00
Grade 90.00 out of 100.00
Question 1
Complete
Mark 1.00 out of 1.00
Which of the following statement/s is/are more accurate?
a) Companies with an aggressive working capital policy usually do not have big cash reserves to take advantage of asset
acquisition opportunities that may arise.
b) Debtors’ time lag is an indication of how long it takes the company to convert its resource inputs into cash for
companies that sell on credit.
c) A company’s working capital typically consists of current assets, long term investments and inventory.
d) Increase in sales will have no bearing on company’s working capital requirements.
Choose the correct statement or combination of statements:
a. Statement (a)
b. Statement (b)
c. Statements (c) and (d)
d. Statements (a) and (b)
, Question 2
Complete
Mark 1.00 out of 1.00
Gravel Galore is a company owned by Josaf Mokele and Michale Molefi. They started 10 years ago on a open piece of land
next to Josaf’s home, in their own community to provide sand, stone, gravel, concrete and more to the local people to assist
them to gain access to these types of building material more easily.
They became very successful quite fast and they were forced to start looking for a bigger piece of land. They started to
diversify into more types and sort of material needed for building purposes.
Josaf Mokele and Michale Molefi are starting to investigate the opportunities to buy even bigger land just outside Piet Retief.
They are asking for your assistance in this regards.
You can assume that the discount rate is 9% and cost of capital is 12%.
The project will have the following cash flows:
Year Cash Flow
R’million
0 (200)
1 40
2 60
3 80
4 100
5 120
Calculate the net present value of the proposed Piet Retief project.
a. R 40 390 000
b. R 97 807 000
c. R100 000 000
d. R 66 921 000
