(b) (i) Sales revenue 3
Parts costs 3
Variable costs 2
Fixed costs 1
Royalty fee 1
Tax payable in Yilandwe 3
Working capital 2
Remittable flows ($) 1
Contribution from parts ($) 2
Tax on parts’ contribution and royalty 1
Impact of lost contribution and redundancy 1
NPV of project 1
––––
21
––––
(ii) Up to 2 marks per assumption discussed Max 9
2–3 marks per issue/risk discussed Max 11
––––
Max 17
––––
Note: For (b)(ii), where points can be made either as assumptions or as issues, marks
will be allocated to either area as relevant.
(iii) Reasoned recommendation 3
––––
Professional marks for part (b)
Report format 1
Structure and presentation of the report 3
––––
4
––––