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please explain all the steps fully and ASAP 0 1 2 3 5000 4 3000 Q4. X Itd is considering investing in projects A, B

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0 1 2 3 5000 4 3000 Q4. X Itd is considering investing in projects A, B and C. The forecasted cash flows are as follows. Year project A project B Project C Cash flows(K) cash flows(K) Cash flows(K) (15,000) (17500) (11000) 2500 5000 3000 4000 1500 2600 1500 6000 2000 1900 7000 6500 700 The investment will require a working capital of K2800 for project A and C, and K3200 for project B. The investment will attract a 25% depreciation on reducing balance for project A and C, and straight line allowance for project B. All the projects will have a salvage value of 5000 each at the end expected lifetime. The tax rate is 30% on profits and that the cost of capital is 10%. The lifetime expected is 5 years for all the projects. Calculate the following (a) The payback period for each project (b) The discounted payback period for each project (c) The ARR for each project (d) The NPV for each project (e) The IRR for each project (t) The PI for each project 5 (g) And make an investment decision by suggesting which project to invest in and give reason. Q5. A consumer has K1000 to spend on two commodities, the first of which costs K50 per unit and the second K100 per unit. Suppose that the utility derived by the consumer from x units of the first commodity and y units of the second commodity is given by the utility function U(x,y) = 10x/0+ How many units of each commodity should the consumer buy to maximize utility? Year 4 Q4. X ltd is considering investing in projects A, B and C. The forecasted cash flows are as follows. project A project B Project C Cash flows(K) cash flows(K) Cash flows(K) 0 (15,000) (17500) (11000) 2500 5000 3000 2 4000 1500 2600 3 1500 6000 5000 3000 2000 1900 5 7000 6500 700 The investment will require a working capital of K2800 for project A and C, and K3200 for project B. The investment will attract a 25% depreciation on reducing balance for project A and C, and straight line allowance for project B. All the projects will have a salvage value of 5000 each at the end expected lifetime. The tax rate is 30% on profits and that the cost of capital is 10%. The lifetime expected is 5 years for all the projects. Calculate the following (a) The payback period for each project (b) The discounted payback period for each project (c) The ARR for each project (d) The NPV for each project (e) The IRR for each project (1) The PI for each project (g)And make an investment decision by suggesting which project to invest in and give reason. 0 1 2 3 5000 4 3000 Q4. X Itd is considering investing in projects A, B and C. The forecasted cash flows are as follows. Year project A project B Project C Cash flows(K) cash flows(K) Cash flows(K) (15,000) (17500) (11000) 2500 5000 3000 4000 1500 2600 1500 6000 2000 1900 7000 6500 700 The investment will require a working capital of K2800 for project A and C, and K3200 for project B. The investment will attract a 25% depreciation on reducing balance for project A and C, and straight line allowance for project B. All the projects will have a salvage value of 5000 each at the end expected lifetime. The tax rate is 30% on profits and that the cost of capital is 10%. The lifetime expected is 5 years for all the projects. Calculate the following (a) The payback period for each project (b) The discounted payback period for each project (c) The ARR for each project (d) The NPV for each project (e) The IRR for each project (t) The PI for each project 5 (g) And make an investment decision by suggesting which project to invest in and give reason. Q5. A consumer has K1000 to spend on two commodities, the first of which costs K50 per unit and the second K100 per unit. Suppose that the utility derived by the consumer from x units of the first commodity and y units of the second commodity is given by the utility function U(x,y) = 10x/0+ How many units of each commodity should the consumer buy to maximize utility? Year 4 Q4. X ltd is considering investing in projects A, B and C. The forecasted cash flows are as follows. project A project B Project C Cash flows(K) cash flows(K) Cash flows(K) 0 (15,000) (17500) (11000) 2500 5000 3000 2 4000 1500 2600 3 1500 6000 5000 3000 2000 1900 5 7000 6500 700 The investment will require a working capital of K2800 for project A and C, and K3200 for project B. The investment will attract a 25% depreciation on reducing balance for project A and C, and straight line allowance for project B. All the projects will have a salvage value of 5000 each at the end expected lifetime. The tax rate is 30% on profits and that the cost of capital is 10%. The lifetime expected is 5 years for all the projects. Calculate the following (a) The payback period for each project (b) The discounted payback period for each project (c) The ARR for each project (d) The NPV for each project (e) The IRR for each project (1) The PI for each project (g)And make an investment decision by suggesting which project to invest in and give reason

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