$1.$ Calculate the appropriate discount rate for Tuba Ltd when evaluating its capital

expenditure projects. $(5$ marks$)$

$2.$ For project $4,$ calculate its:

$($i$)$ Net Present Value $($NPV$)(24$ marks$)$

$($ii$)$ Profitability Index $($PI$)(3$ marks$)$

$($iii$)$ Discounted Payback $($DPB$)(3$ marks$)$

$3.$ Given Tuba$$s capital rationing circumstances, determine what you consider to be Tuba

Ltd$$s optimal selection of the projects under review. Your answer should include a

discussion of the methods used, and the appropriate method of determining the optimal

solution.