3. a. A Pharma company invests S 1000 in a project of which S 800 is Equity and $200 is debt. The annual cash flows from the project are $ 146 and the tax rate is 25%. Both the interest and the cost of debt are each 7%, while return on equity is 15%. Calculate the NPV and APV of the project for the company b. Singer Ltd has estimated its total cash requirement to be Rs 2 crore next year. The opportunity cost of funds is 15% per annum. The company will have to incur Rs 150 per transaction when it converts its short term securities to cash. Determine the optimum cash balance. How much is the total annual cost of the demand for the optimum cash balance