Question 1 
Environ Ltd has gathered the following information regarding the probable costs of two alternative projects designed to recycle effluent which is environmentally sensitive. One of the projects must be accepted in accordance with legislation relating to environmental pollution. The possible net cash flows have all been discounted at 16% but are heavily dependent upon factors that cannot be predicted with certainty. However, probabilities of occurrence have been established.

Question 2
Fly Namibia is an independent airline that prides itself in connecting people through local and regional flights whether for business or travel purposes. Granted designated carrier status by the Namibian Transport Commission and operating as Fly West air, the airline had its first official scheduled passenger flight on Monday 24 June 2019. Boldly changing the name to better reflect its role as a trusted Namibian carrier, the airline has been operating as Fly Namibia since November 2021. Assume that Fly Namibia is considering investing three hundred million Namibia dollars in a plane\ with an expected economic life of ten years or investing in a newer plane at a cost of five hundred million Namibia dollars which will have an expected life of twenty years. The plane will service the Windhoek-Johannesburg route. Owing to differences in capacity and fuel efficiency, Fly Namibia expects the annual cashflow from the newer plane to be one hundred and twenty million Namibia dollars per year, whilst the

Question 3 

CellTel Limited, a giant player in the telecommunication industry mostly operates in the North African telecommunication industry and intends on setting up operations in Namibia. In the first half of 2020, it paid consulting fees amounting to N$300 000 to a consulting firm to conduct a feasibility study of its plans in the Namibian market. In the second half of 2020, it also paid licensing application fees of N$50 000 to the Communications Regulatory Authority of Namibia (CRAN), the Namibia communications regulator to be granted a license to operate, which was subsequently granted for operations to start in 2021. As per the business plan, the company will require an amount of N$7 million immediately for specialised equipment required to set-up its telecommunication infrastructure in Namibia during the initial 3 years of phase 1 of the project