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Question 17 No Limits (Pty) Ltd has limited capital of R200 000 to invest in the following projecta: Year Project A Project B Project C

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Question 17 No Limits (Pty) Ltd has limited capital of R200 000 to invest in the following projecta: Year Project A Project B Project C Project D 0 (100 000) (60 000) (120 000) (80 000) 1 30 000 (40 000) 60 000 (100 000) 2 60 000 60 000 60 000 120 000 3 70 000 85 000 60 000 130 000 NPV 17 482 6 475 16 994 The weighted average cost of capital is 15% The net present value of project Dis R 70 000 R9 528 Negative None of the above No Limits (Pty) Ltd has limited capital of R200 000 to invest in the following projects: Year Project A Project B Project Project D 0 (100 000) (60 000) (120 000) (80 000) 1 30 000 (40000) 60 000 (100 000) 60 000 60 000 60 000 120 000 3 70 000 85 000 130 000 60 000 16 994 NPV 17 182 6 475 The weighted average cost of capital is 15% Ranking projects A, B and C according to the profitability index of each project will give the following ranking (from highest to lowest PI) O "Project A project B. then project "Project B. project A then project " O "Project A project, then project " None of the above Question 12 1 points A five-year project has an initial investment of R160 000. The project is expected to earn net annual cash flows of R50 000 for each of the five years. The discount rate 15. The net present value is OR 90 000 R3608 R20209 O None of the above Quesnon 12.30 M 10 another Question will save the response

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