Hawk plc has the following projects in which it can invest:

Project	Cash outflow at t=0, m	Present value at t=0 of cash inflows, m	NPV at t=0, m
A	10	19	9
B	13	38	25
C	3.8	7.3	3.5
D	5.0	9.9	4.9
E	4.8	7.1	2.3

Hawk has no other investment opportunities. Projects C and D are mutually exclusive. The capital investment budget at t=0 is limited to 25 million. Hawk plc is committed to maximising the wealth of its shareholders.

How should Hawk utilise its capital investment budget if:

a) all projects are divisible (can be scaled down)? (4marks)

b) all projects are indivisible? (4marks)