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a) Explain the following concepts: (i) Sale and lease back. (2 Marks) (ii) Finance lease and operating lease. (4 Marks) iii) Factoring receivables, (3 Marks)

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a) Explain the following concepts: (i) Sale and lease back. (2 Marks) (ii) Finance lease and operating lease. (4 Marks) iii) Factoring receivables, (3 Marks) (b) Misio Ltd company is considering two investment project proposals. The projects are mutually exclusive (meaning if one accepted, the other is rejected). The projects are expected to generate cash flows as follows: The cost of capital for each project is 10%. Required: evaluate the project proposals and advise the company under each of the methods bellow; i) NPV (3Marks) ii) IRR (3Marks)

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