Consider the following information given below and do the following. Suppose you are

considering $4$ projects you have shortlisted. The WACC estimated is $12\%.$ Answer the

following questions based on the below table.

Year$($Investment required

: Cash outflows$)$ Project $1$ Project $2$ Project $3$ Project $4$

t $=0-340-140-290-400$

Equivalent Annual Annuity

of the Project $($EAA$)$ in Rs$.$ Crs $80808080$

No year years of the completion

of the project $($years$)128415$

i$)$ Which of the following projects has the highest NPV$.$ Show your detailed

calculations.

a$)$ Project $1$

b$)$ Project $2$

c$)$ Project $3$

d$)$ Project $4($ Marks: $5)$

ii$)$ Which of the following projects has the highest Profitability Index. Show your

detailed calculations.

a$)$ Project $1$

b$)$ Project $2$

c$)$ Project $3$

d$)$ Project $4($ Marks: $5)$

iii$)$ Suppose you have a capital budget of $650$ Crs at t$=0,$ find the best projects in your

portfolio solely based on the Profitability Index. Show your detailed calculations.

a$)$ Project $1$ & $2$

b$)$ Project $1$ & $3$

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c$)$ Project $1$ & $4$

d$)$ Project $2$ & $3$

e$)$ Project $2$ & $4$

f$)$ Project $3$ & $4$