Q$4.$ Projects A is expected to generate following

cash flows: An immediate outflow of GHC $200$;

then inflows of $100,150,$ and $300$ at the end of

each of the next three years. In the $4$th year, an

outflow of GHC $250$ is expected for clean up

purposes; In the $4$th year, an outflow of GHC $250$

is expected to be spent for clean up;Projects B is

expected to generate following cash flows: An

immediate outflow of GHC $300$; then inflows of

$200,250,$ and $350$ at the end of each of the next

three years. In the $4$th year, an outflow of GHC

$350$ is expected to be spent for clean up;If the

expected return on the market is $30\%$ and the risk$-$

free rate is $24\%,$ which project will you choose if

the beta of the equity of A is $0\mathrm{.}85,$ and that of B is

$1\mathrm{.}2$ and you can finance only one project? Instead

of choosing, suppose both projects will be

accepted. What is the beta of your portfolio?Now

supposed the Portfolio of two projects is financed

by $50\%$ debt which has a beta of $0\mathrm{.}75,$ what is the

portfolio's Net cash flow to providers of capital?