1. (a) Given the production functions (pf) Coca-Cola Group of companies in terms of capital investment (k) and Labour force (L) is as follows; P (K) = 1000k 10k² and P (L) =5000L 50L², where k and L is measures US dollars and hundreds (10) of employees respectively, while the production (P) is measured in Metric tons food. Determine the following;

1. The value that maximizes the production for the capital and Labour force
2. The maximum production in terms of capital and Labour force units.
3. Laboure units when the production level is $400.
4. Capital when the when the production is $1,000.

1. Hence sketch the curve of the function Sketch the functions P (K) = 100k 10k² and P (L) =500L 50L² on the same axes.
2. The capital investment is $ 9 million; the table below shows the annual cash-flow at an interest rate of 5 % per year;

Year (cash flow)	Amount (million)
1	0.5
2	1.5
3	2.5
4	3.5
5	4.5

Determine the

1. Present value
2. Net present value

Hence decide whether the investment is feasible