1. As an entrepreneur, your company was invited to consider partnering with company X in three (3) projects within their domain. The three (3) projects under consideration are; Project A, B & C. Each project requires an initial investment of USD 80,000.00 USD 115,000, and USD 275,000 respectively. In considering the feasibility of these investments, the expected revenues after taxation are as follows: Year Project A Proiect B. Project C 1 $25,000 $22,000 $20,000 2 $30,000 $25,000 $38,000 3 $35,000 $48,000 $65,000 4 $43,000 $57,000 $50,000 5 $55,000 $75,000 $50,000 Based on market conditions, your company has established a required rate of return (RRR) of 14% From the information provided you are required to a) Compute the estimated payback and discounted payback periods in years for each project? (Apply a Discount Factor of 8%) (5 marks) b) Your company has access to two (2) sources of funds: i) A cost of capital of 6%, you are asked to compute the Net Present Value (NPV) and the Internal Rate of Return (IRR) for each project and rank each project in the order of investment priority based on this source of investment. ii) A cost of capital of 9%, you are asked to compute the Net Present Value (NPV) and the IRR for each project and rank cach product in the order of investment priority. (12 marks) c) Based on the results of your computations above, prepare a concise report to the investors advising them as to the project(s) of choice to invest in. Be sure to justify your recommendation(s). (8 marks) d) As part of management team of your company; clearly state any additional factors you will consider prior to making a final project(s) investment recommendation. (5 marks) Present Value of 1$ factor (Extract) Periods 6% 7% 8% 9% 10% 1 9434 .9346 9259 .9174 .9091 2 .8900 .8734 .8573 .8417 .8264 3 .8396 .8163 .7938 .7350 7722 7084 .7513 .6830 4 7921 .7629 5 .7473 7130 .6806 .6499 .6209