MAC3702 TL202 S2 2014

1669 WordsMar 24, 20157 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…show more content…
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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