Investico Inc. is an financial investment company that is located in Nigeria & South Africa. The company asked the financial analyst to analyze and evaluate the establishment of a new plant in Nigeria (Plant "G"). The project will cost $15,000 and will generate $5,000 cash flow per year for the next 5 years. Also, the company is planning to build another plant in Egypt (Plant "F"). The initial costs of this project is estimated to be $20,000 and it may generate $7,000 for the next five years. The company estimates that the WACC is 12%.

8. Which of the following statements about ONLY the project "G" is Most accurate? *

A) The MIRR of the project is 16.1%; The company should accept the new project.

B) The NPV of the project is approximately +$3,023.8; The company should accept the new project.

C) The payback period is 3years.

D) All of the above.

E) None of the above.

9. If the projects (F & G) are mutually exclusive, the company would mostly: *

A) Choose Project "G" since it has higher NPV than Project "F".

B) Choose Project "F" since it has higher NPV than Project "G".

C) Choose Project "F" since it add the most value and profit to the company.

D) Accept both projects.

E) Choices (B) and (C) are correct.

F) None of the above.