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Capstone has R10m available for investment at the beginning of the project and at the beginning of the first year. Capstone is presented with the

Capstone has R10m available for investment at the beginning of the project and at the beginning of the first year. Capstone is presented with the following independent projects with their cash flows. The required rate of return is 10%.

C0C1C2A-10305B-5624C-5515D0-4060

a) Determine the optimum selection of projects (Hint: Which combination of projects would be optimum). Justify your selection. (6 Marks)

b) What is the NPV of the optimum selection of projects?

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