Part A (12 Marks) There are three projects available to a company to invest in. All investments require an initial Investment of $50 million with the following forecasted cash flows. Assume end of year cash flows except for date 0 (i.e. date 0 represents "today"). Year Investment A Investment B Investment C 0 $50M $50M $50M 1 +$50M +$5M $5M 2 $5M $5M $55M 3 $5M $60M $5M C) Assuming the discount rate is 10%, which investment should the company choose? Show your calculations. (1) Now if the discount rate can be higher or lower than 10% will you change your mind for the company to invest in? Why or why not? (ii) When will Investment A, B or C be preferred? Part A (12 Marks) There are three projects available to a company to invest in. All investments require an initial Investment of $50 million with the following forecasted cash flows. Assume end of year cash flows except for date 0 (i.e. date 0 represents "today"). Year Investment A Investment B Investment C 0 $50M $50M $50M 1 +$50M +$5M $5M 2 $5M $5M $55M 3 $5M $60M $5M C) Assuming the discount rate is 10%, which investment should the company choose? Show your calculations. (1) Now if the discount rate can be higher or lower than 10% will you change your mind for the company to invest in? Why or why not? (ii) When will Investment A, B or C be preferred