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Mega Power would like to evaluate 5 projects A,B,C,D and E with the following cash flows. Project A B D E Cash Flow Yr 0

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Mega Power would like to evaluate 5 projects A,B,C,D and E with the following cash flows. Project A B D E Cash Flow Yr 0 1 - 150 000 80 000 -120 000 80 000 -200 000 100 000 -300 000 150 000 -250 000 150 000 2 60 000 80 000 120 000 150 000 100 000 3 70 000 80 000 140 000 150 000 100 000 Mega Power employs the net present value as a capital budgeting technique. The company's cost of capital is 12%. Which projects must Mega Power undertake and in which order in order for it to maximize shareholders wealth? (25 Marks)

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