MAC3702 TL202 S2 2014

1669 Words Mar 24th, 2015 7 Pages
MAC3702/202/2/2014

Tutorial letter 202/2/2014
Application of financial management techniques SEMESTER 2
Department of Management Accounting
IMPORTANT INFORMATION:
This tutorial letter contains important information about your module.

Dear Student
Enclosed please find the solution in respect of assignment 02/2014. It is in your own interest to work through the suggested solution in conjunction with the assignment and your own answer.

Kind regards
Telephone number

Room number

Mr N Masela

012 429 4415

1 – 37

Mrs S Büchner

012 429 2266

1 – 57

Mrs S Klopper

012 429 8526

1 – 40

E-mail

MAC3702-14-S2@unisa.ac.za

MAC3702/202/2

SOLUTION FOR ASSIGNMENT 02/2014 FOR THE SECOND SEMESTER
QUESTION 1
(a)

Determining value of company
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Furthermore, we need to always compare apples with apples and therefore adjust cash flows with inflation due to the rate including inflation. The opposite is also true.
Conclusion:
Sam should not invest in the new business venture since the Net Present Value is negative. (b)

Sam should consider the following business risks:



Industry type risk
Due to the economic recession less people are going on holiday to these luxury type lodges 

Fuel price hikes
What impact will an increase in the fuel price have on the sales price of my game drives and

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