Proctor Berhad ("PB") is a conglomerate Malaysian public-listed company. The company has five different divisions ranging from Oil & Gas, Consumer Products. Plantation Property & Construction and Manufacturing. The overall company cost of capital is 13.5%. The management of PB has identified the following projects in their strategic plans for growth within the identified divisions (Figure 1). However, they have only a limit of RM 45 Million in their capital expenditure budget. Further information on the projects is provided in Figure 1 below: Figure 1 (RM '000) (RM 000) Project Initial investment Annual revenue Variable Annual fixed Life of project costs costs (years) A B D E F 15,000 22.000 17.000 12.500 16,500 32,000 18.320 22.500 10.850 11,650 4,500 12,450 25% 30% 10% 15% 5% 12% 3,500 5.000 2.500 4.500 2.500 3.200 4 8 4 10 15 20 Other relevant information on the projects is provided below: The cash flows of the projects are confined to the lifetime of each project. All cash flows occur on anniversary dates. Assume that the Malaysian tax rate is 25%. The variable cost is a percentage of the annual revenue The annual fixed costs do not include depreciation. Depreciation is based on straight line basis over the lifetime of each project. There is no salvage value applicable on all investments. Projects C and D are mutually exclusive. Required: la) Determine the Net Present Values and Benefit Cost Ratio for each of the projects above. Show your workings clearly. (12 marks) Based on this, what is the optimal investment based on its capital rationing and how much internal fund will be available to PB. (13 marks) (b)