FIN220 SEM 191 QUESTION 4 Wiec the coming year. The following a cal Han c. Into rationina.com decision be made? QUESTIONS Abu Luqman must determine what investment opportunities to undertake for his business Al Aldhal Corporation. He is limited to a maximum expenditure of SR17.500 only for this capital budgeting period. The available projects with their respective IRR, NPV and Pl for Al-Afdhal Corporation are listed below: Project IRR B C D Initial Capital Outlay in SR 500 5000 5000 7500 12500 18% 25% 37% 20% 26% NPV 50 6500 5500 5000 500 1.10 2.30 2.10 1.67 1.04 a ACCORDING TO IRR CRITERIA, which projects would be selected base on the capital rationing constraint above? CALCULATE THE TOTAL NPV VALUE for the selected projects according to this ranking b. ACCORDING TO PROFITABILITY INDEX (PI) CRITERIA which projects would be selected base on the capital rationing constraint above? CALCULATE THE TOTAL NPV VALUE for the selected projects according to this ranking c. From you calculation in A and B. Which set of projects would you choose under this capital constraint and explain why. Page 5 of 6