(a) The following are the cash flows from two mutually exclusive projects available to Coroebus plc in thousands of euro. C. C Project A |12489.5912489.5912489.59 -30000 Project B-30000 32009.00 1996.00 999.00 (i) What is the NPV of each project if Coroebus's cost of capital is 8%. (5 marks) (5 (ii) What is the IRR of project A? marks) (5 (iii) What is the IRR of project B? marks) (iv) Which project should the firm choose? (5 marks) Why does the arise in this conflict (5 marks) case? (vi) Outline the fundamental theoretical reasons why conflicts can occur between the IRR and NPV criteria. Page 5 of 6 (5 Marks) (b) Answer true or false to each of the following statements. In each case fully explain the reasoning behind your answer. One mark will be allocated for the correct answer with the remaining four marks allocated to your explanation. (i) Having CEO-chair duality (the Chief Executive Officer is also the chairman of the board of directors) enhances a company's corporate governance. (5 marks) (ii) Cumulative Voting protects minority shareholders against exploitation by dominant shareholders. (5 marks) (iii) Cross-directorships reduce the independence of the board. (5 marks) (iv) The asset use problem that can emerge from the separation of ownership from control is solely concerned with the consumption of perks by management