0. What amount must Florence invest today at 6% compounded semi-annually so that she can withdraw K5, 000 at the end of each year for the next 5 years? (3 marks) (Total 20 marks) Question 3 12000 A company is considering 4 capital expenditure proposals. The proposals are for similar products and are expected to operate for four years. Profit/loss Project A Project B Project C Project E Initial Investment 40,000 46,000 50,000 60,000 Year 1 6,500 4,500 10,000 12,000 Year 2 3,500 2,500 15,000 15,000 Year 3 13,500 4,500 12,000 30,000 Year 4 (1,500) 14,500 10,000 10,000 Scrap value at year 4 end 4,000 4,000 10,000 6,000 Depreciation is charged on straight line basis. The required rate of return is 12%. Required a. The Net present value for each project (16 marks) b. Projek 50.00 Question 4 Advice the company on which projects to take based on your calculations. (4 marks) 115.00 112.00 (Total 20 marks) Cana Plc is a company that supplies energy drinks within a small community. It sells a fixed quantity of 300 bottles per week. A fixed bottle has a storage cost of K3 per bottle per annum. Delivery from the supplier takes 3 weeks and purchase price per bottle is K30.The current supplier charges a fixed K85 per order regardless of the order size.tum Cana Plc has recently been approached by another supplier of the same brand of energy drink with the following offer: 1. The cost to Cana per bottle will be K29 each. 2. There will be a fixed order processing charge of K350 regardless of order size. 3. Delivery time will be one week. 4. Victory estimates that due to packaging differences, the storage cost per bottle will be K2.80 per annum per bottle. Required a. Assuming Cana continues to purchase from the existing supplier, calculate i. ii. iii. Economic order quantity (3 marks) Reorder level (3 marks) Total cost of stocking the energy drink for one year to the nearest K (4 marks) b. If they change to the new supplier calculate egardles i. Calculate the economic order quantity (3 marks) ii. the stora Discuss if the change will be worth it (3 marks) c. Discuss the importance of working capital management (4 marks) Question 5 supphe (Total 20 marks) KNL and Sons has been offered a loan of K500, 000 at 20% annual interest. They have opted to pay it in 24 months on a quarterly basis. Prepare an amortization schedule to show how the loan will be amortized at the end of each period. (20 marks) year to t (Total 20 marks)