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Question 3 Kwabena Kwabena Company Limited is considering investing into 4 projects and has identified GHC 430,000 for the initial outlay the cost of company

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Question 3 Kwabena Kwabena Company Limited is considering investing into 4 projects and has identified GHC 430,000 for the initial outlay the cost of company capital is 10% There are no investments opportunities available and no other constraints other than initial outlay apply. Each investment can be accepted or rejected in its entirety and not accepted on partial basis. No investment is repeatable. Any surplus fiinds can be invested easily on the money. Details of the investment are shown below: Year 0 1 2 3 4 5 A B C D (50,000) (120,000) (200,000) (240,000) 15,000 35,000 NIL 150,000 15,000 35,000 NIL 150.000 15.000 35,000 100,000 NIL 15.000 35,000 100.000 NIL 15.000 35.000 100,000 NIL 1. You are required to a. Compute the Net Present Value (NPV) for each Project b. Compute the Profitability Index (PT)for each Project c. Rank the Project per each method above d. Which projects should be undertaken

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