PART B - INVESTMENT APPRAISAL DIAZ 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 (1,600,000) 950,000 850,000 350,000 Diaz plc has 2m available for investment and has a cost of capital of 12%. a) Calculate the optimum combination of investments Diaz ple should invest in assuming that the projects are divisible. b) Discuss ways in which Diaz ple may alternatively address the proposals on the basis that the projects are non-divisible