2) Three projects A, B and C are being considered and have the following before-tax cash flows Year 0 Year 1 Year 2 Year 3 Project Project A Project B Project C -100,000 50,000 75,000 60,000 30,000 45,000 60,000 30,000 45,000 60,000 30,000 60,000 a) If capital available for investing in A, B or C is limited to $200,000, what is the best combination of projects to undertake, at a before-tax required rate of return of 15%? What is the added value (wealth) of that combination? b) Assume that the initial investments of projects A, B and C can be depreciated entirely (no salvage value) using straight-line depreciation over 3 years. Calculate the after-tax cash flows of each of the 3 projects assuming a tax rate of 25%, and calculate the NPV's after tax using a required rate of return of 10%. c) Assume the firm decides to augment its cash on hand of 200K and borrow the additional 25K needed to finance all 3 projects (so in effect the firm is undertaking Portfolio A+B+C using its 200K and a 25K loan), using a 3 year mortgage at 12%. What would be the yearly payment? d) What would be the impact of the strategy adopted in c) on the combined cash flow after tax of (A+B+C)