Jazs plc has been researching three investment proposals. Details of the cash flows of each proposal are as follows:

Proposal Year 0 Year 1 Year 2 Year 3

Capital Invested

A (200,000) 120,000 80,000 80,000

B (800,000) 500,000 440,000 140,000

C (1,600,000) 950,000 850,000 350,000

Jazs plc has 2m available for investment and has a cost of capital of 12%

. a) Calculate the optimum combination of investments Jazs plc should invest in assuming that the projects are divisible.

b) Discuss ways in which Jazs plc may alternatively address the proposals on the basis that the projects are non-divisible.

PLEASE PROVIDE ANSWER WITH WORKING AND ON PAPER SO I UNDERSTAND