Question 3 (a) Production Unlimited has an overall beta of 0.92 whilst a current risk-free rate of 6% pertains on non-risk bearing investments. What is the cost of equity for production unlimited if the firm is 100 percent financed with common stock and the market return is 11.28 percent? (b) Define the beta of an asset and state the relationship between an asset's beta and expected returns. a) Compute the NPV and IRR of Project-05. Which of the project will you seler bi Ass QUESTION THREE the sensitivity of the outcome of the projet os to enterprete your result a) Asanka Ghana Ltd is considering investing in the following projects which are considered mutually exclusive: PROJECT GO PROJECT COME GH Annual cash inflows 1,000,000 2,000,000 Cost of Machine 2.500,000 6,000,000 Scrap value of Machine 250,000 1,000,000 Expected life of the Project 5 years 450.000 4,000000 Asanka Ghana Ltd uses the straight line method of depreciation. However, tax-allowable depreciation is 30% on straight line basis. The cost of capital for the company is 20% per arinum. GH 5 years 1) Calculate the Net Present Value (NPV) for each project. arte puto me me kacuror care treicher iii) Compute the Payback period for each project. (Note: In cach of the above, advise the Company on which of the projects to implement or undertake.)