MUCOLIVIIZ a. The cash flows for projects A, B and C are given below over their three year life. For simplicity, assume that cash flows are equivalent to the accounting profits and the discounting rate is 20%. Project Year A B C O -1 -2 -1 1 0 0 2 0 3 3 -2 NO (i) Calculate the Payback period. the Average Accounting Rate of Return adn Net Present Value for each project. 6: [15%] (ii) Suppose that projects A and C are mutually exclusive and project B is independent. Calculate the Payback period, the Average Accounting Rate of(i) Calculate the Payback period, the Average Accounting Rate of Return adn Net Present Value for each project. [15%) (ii) Suppose that projects A and C are mutually exclusive and project B is independent. Calculate the Payback period, the Average Accounting Rate of Return and Net Present Value for each combination of projects. [20%] (ili) Explain which project, or combination of projects, is preferred by each budgeting technique and comment on your findings. [15%] b, Derive the Security Market Line equation and discuss it's significance. [50%] Paragraph