4) Now Mr Tom is considering four project proposals. They are summarised below: Project Initial Annual Annual xed Life of the investment revenue cost project (000) (000) (000) (years) A 15 20 4 3 B 32 32 10 5 C 18 8 2 15 D 25 50 20 10 Variable costs are 30% of annual revenue. Assume cost of capital 8%. No inflation and tax. All cash ows occur on anniversary dates. Each project can be only undertaken once and each is divisible. Calculate the NPV for each project and comment on your answers. If the firm has a limit of 50,000 for investment in projects at time 0, what is the optimal allocation among these projects, and what is the maximum net present value? [20]