I would greatly appreciate it if someone could answer all parts of this question

ast Year Paper S81476_FIN41700 X 83119 FIN41700 X SUCD Connect B. FIN41700 Solutix Past Papers UC X 5 83119 FIN41700.pdf SECTION B - Choose any two of these three questions Question 4 a) Describe the common methods of investment appraisal. You should consider the Book Rate of Return, Payback Period, Discounted Payback, Net Present Value, and Internal Rate of Return. Briefly discuss the potential benefits and shortcomings of each method. (10 Marks) b) It is widely recognised that in circumstances of capital rationing, the traditional appraisal techniques will not always offer an optimal recommendation. Identify the potential problem, describe the Profitability Index, and suggest how it might offer a solution. Include a description of the Weighted Profitability Index. (10 Marks) c) You are required to assess two proposed investments. They are mutually exclusive, so only one can be selected. There is preference for the Internal Rate of Return method, so it must be included as part of your assessment. Opportunity cost of capital is 9%. Details on each proposal (5000s), including estimates of the Internal Rate of each proposal are as follows: Project Year 1 Year 2 IRR (%) One -600 375 450 23 Two -300 210 268.5 36 Year 0 i. Prepare a brief report for your colleagues, explaining why the simple IRR measure may not be appropriate in this case. ii. Demonstrate how the IRR can be adapted to produce a correct recommendation. iii. Estimate the Net Present Value of each project, to demonstrate that your answer to the previous section is correct. (10 Marks) L.99 ast Year Paper S81476_FIN41700 X 83119 FIN41700 X SUCD Connect B. FIN41700 Solutix Past Papers UC X 5 83119 FIN41700.pdf SECTION B - Choose any two of these three questions Question 4 a) Describe the common methods of investment appraisal. You should consider the Book Rate of Return, Payback Period, Discounted Payback, Net Present Value, and Internal Rate of Return. Briefly discuss the potential benefits and shortcomings of each method. (10 Marks) b) It is widely recognised that in circumstances of capital rationing, the traditional appraisal techniques will not always offer an optimal recommendation. Identify the potential problem, describe the Profitability Index, and suggest how it might offer a solution. Include a description of the Weighted Profitability Index. (10 Marks) c) You are required to assess two proposed investments. They are mutually exclusive, so only one can be selected. There is preference for the Internal Rate of Return method, so it must be included as part of your assessment. Opportunity cost of capital is 9%. Details on each proposal (5000s), including estimates of the Internal Rate of each proposal are as follows: Project Year 1 Year 2 IRR (%) One -600 375 450 23 Two -300 210 268.5 36 Year 0 i. Prepare a brief report for your colleagues, explaining why the simple IRR measure may not be appropriate in this case. ii. Demonstrate how the IRR can be adapted to produce a correct recommendation. iii. Estimate the Net Present Value of each project, to demonstrate that your answer to the previous section is correct. (10 Marks) L.99