Consider normal rate 7.25%

RC is considering undertaking one of three mutually exclusive projects, as outlined below Project Whisky: Requires an initial investment of S10 mln. The project will generate annual cash inflows of $1.5 mln and wll last for 12 years. Project Tango: Requires an initial investment of $15 mln. First year cash inflows will be $1.5 mln but will grow at a rate of 3% annually. The project will last for 14 years. Project Foxtrot: Requires an initial investment of $4.5 mln and returns a one-time cash inflow of $7.5 mln in 6 years. Which of the three projects should the firm undertake? Justify your answer PRC is considering expanding into a new geographic region. The marketing department estimates that they will be able to generate cash inflows as follows over the 15-year life of the expansion: Year 1: S1.75 mln Year 2: $3.85 mln Years 3-5: S5.75 mln annually Years 6- 12: S6.25 mln annually Years 13 &14: $4.75 mln annually Year 15:$3.50 mln What is the most that PRC could spend on this project today to make it a good investment? Justify your