Mace Ltd is planning its capital budget for 2015 and 2016. The company's directors have of projects to five, the expected cash flows of which are set out below: reduced their, Project 2015 2016 2017 2018 +25,000 +25,000 +60,000 +45,000 +30,000 +25,000 +45,000 +70,000 +55,000 +40,000 3 +81 3 0000 +8,300 : +900 +7,900 1 2 3 4 5 60,000 30,000 40,000 0 50,000 +30,000 20,000 50,000 80,000 +10,000 None of the five projects can be delayed and all are divisible. Cash flows arise on the first day of they minimum return required by shareholders of Mace Ltd is 10 percent p.a. Which projects should Mace Ltd. 6 if the capital available for investment is limited to 100,000 on 1 January 2015, but readily available at1l p.a. on 1 January 2016 and subsequently?

3 Mace Ltd is planning its capital budget for 2015 and 2016. The company's directors have reduced their of projects to five, the expected cash flows of which are set out below: 2017 2018 NPV 2016 2015 Project +25,000 +25,000 1 -60,000 +30,000 +1,600 -30,000 2 -20,000 +25,000 +45,000 +1,300 3 -40,000 -50,000 +60,000 +70,000 +8,300 4 0 -80,000 +45,000 +55,000 +900 5 -50,000 +10,000 +30,000 +40,000 +7,900 None of the five projects can be delayed and all are divisible. Cash flows arise on the first day of the ye minimum return required by shareholders of Mace Ltd is 10 per cent p.a. Which projects should Mace Lida 6 if the capital available for investment is limited to 100,000 on 1 January 2015, but readily available at 10p: p.a. on 1 January 2016 and subsequently