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Question 3 (12 marks) You have recently graduated from Boston City Campus. Your aunty Mary needs financial assistance and has come to you for advice.
Question 3 (12 marks) You have recently graduated from Boston City Campus. Your aunty Mary needs financial assistance and has come to you for advice. She is aware that you have studied Financial Management while still a student at Boston City Campus. Mary owns her own business. She has managed to save a lot of the income from her business. She informed you that she only gets 4% interest from the bank and would rather like to invest her business's money in a project. She found the following opportunities: The cost of capital is 15%. Required: 3.1Calculate the net present value of each project. Round net present value for each year to the nearest whole number. (10 marks) 3.2 Inform your aunt which project will be the most beneficial and why. (2 Marks)
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