(i) Estimated future rates based on purchasing power parity 1

Sales revenue, variable costs, component cost and fixed costs (in GR) 4
 Taxable profits and taxation 2
 Investment, terminal value and working capital 2
 Cash flows in GR 1
 Cash flows in $ 1
 Discount rate of all-equity financed project 2
 Base case PVs and NPV 2
 PV of additional contribution, additional tax and opportunity cost 4
 PV of tax shield and subsidy benefits 4
 Closure costs and benefits 1
 Initial comments 1–2
 Assumptions and sensitivity analysis 2–3

Max 27

(ii) Implications of change of government 2–3

Other business factors (1 to 2 marks per factor) 5–6

Max 8

Professional Marks

Report format 1
 Layout, presentation and structure 3

Total 4