answer for a b c d

Question Abraham Ltd is a public-listed form. Its cost of capital is 12% per annum. The company in embarking on an ambitious investment project and have short-listed their projects to 4. The table below shows the cash flow from the investment (in 000): Investment 1 Year 2 Year 3rd Year H I J K Current Year -800 -600 -600 0 100 400 300 -600 600 800 300 500 700 800 300 600 TRR (nearest 1%) 52% 50% 46% 10% No project delays allowed. All projects can be divided. Projects cannot be accepted twice. The company is able to cam a 7% return net of tax from external investinents in banks. Required: Evaluate and assist Abraham Lid to choose its projects if capital rationing of cost of investment is 600,000 and eapital rationing at the current year is limited to 400,000 (10 marks) (b) Explain the formulae with variable constraints that can be used for the firm's capital budgeting purposes if capital rationing is limited to 600,000 at the current year and limited to 400.000 at the first year, (4 marks) (e) Critically examine the constraints of the formulation in (b). (5 marks) d) Evaluate the following statement Capital rationing can be explained by microeconomic Discuss critically this statement by providing proper explanations using relevance examples of problems in economics, 46 marks) [Total: 25 marks) Question Abraham Ltd is a public-listed form. Its cost of capital is 12% per annum. The company in embarking on an ambitious investment project and have short-listed their projects to 4. The table below shows the cash flow from the investment (in 000): Investment 1 Year 2 Year 3rd Year H I J K Current Year -800 -600 -600 0 100 400 300 -600 600 800 300 500 700 800 300 600 TRR (nearest 1%) 52% 50% 46% 10% No project delays allowed. All projects can be divided. Projects cannot be accepted twice. The company is able to cam a 7% return net of tax from external investinents in banks. Required: Evaluate and assist Abraham Lid to choose its projects if capital rationing of cost of investment is 600,000 and eapital rationing at the current year is limited to 400,000 (10 marks) (b) Explain the formulae with variable constraints that can be used for the firm's capital budgeting purposes if capital rationing is limited to 600,000 at the current year and limited to 400.000 at the first year, (4 marks) (e) Critically examine the constraints of the formulation in (b). (5 marks) d) Evaluate the following statement Capital rationing can be explained by microeconomic Discuss critically this statement by providing proper explanations using relevance examples of problems in economics, 46 marks) [Total: 25 marks)