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(2) 1.1 List the two criteria to be met in order for project alternatives to be considered mutually exclusive. 1.2 Differentiate between Service and Revenue projects by providing a brief explanation of what each type of these projects entail. (6) (2) 1.3 The current price of a new tipper truck is R450,000. What will the price be in ten years' time if the price is to increase at an annual rate of 7%? (2) 1.4 Daniel wants to start a new business. He needs to have R25,000 in 3 years from now to start his business. How much money must he deposited in a savings account now in order to have this amount if the account pays 10% interest compounded annually? 1.5 A new opencast coal mine needs to set aside some of its profits in order to rehabilitate the mine at the end of its life span. The cost of rehabilitation is estimated at R3,500,000.00 in 2035 rands (13 years from now). Calculate the uniform series of equal payments that this mine will have to make at the end of each year in order to save enough for the rehabilitation requirement. An interest rate of 8% per year, compounded annually, applies. (3) 1.6 Find the present value of the below cash flow. Assume i = 5%. (3) R20,000 R20,000 R20,000 R20,000 R15,000 R15,000 R15,000 R15,000 LL 0 1 3 6 7 7 8 N 4 5 Year 1.7 Determine the present value of R25 000 received for 10 successive years using a discount rate of 7%. (4) (2) 1.1 List the two criteria to be met in order for project alternatives to be considered mutually exclusive. 1.2 Differentiate between Service and Revenue projects by providing a brief explanation of what each type of these projects entail. (6) (2) 1.3 The current price of a new tipper truck is R450,000. What will the price be in ten years' time if the price is to increase at an annual rate of 7%? (2) 1.4 Daniel wants to start a new business. He needs to have R25,000 in 3 years from now to start his business. How much money must he deposited in a savings account now in order to have this amount if the account pays 10% interest compounded annually? 1.5 A new opencast coal mine needs to set aside some of its profits in order to rehabilitate the mine at the end of its life span. The cost of rehabilitation is estimated at R3,500,000.00 in 2035 rands (13 years from now). Calculate the uniform series of equal payments that this mine will have to make at the end of each year in order to save enough for the rehabilitation requirement. An interest rate of 8% per year, compounded annually, applies. (3) 1.6 Find the present value of the below cash flow. Assume i = 5%. (3) R20,000 R20,000 R20,000 R20,000 R15,000 R15,000 R15,000 R15,000 LL 0 1 3 6 7 7 8 N 4 5 Year 1.7 Determine the present value of R25 000 received for 10 successive years using a discount rate of 7%. (4)

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