Question 3 Part A A car manufacturer is considering 2 projects. Project electric is to manufacture electric cars and the other project is to manufacture petrol cars. The car manufacturer has a WACC of 12% and the cash flows of the two projects are given below: Year Electric Petrol 0 -$10,000 -$10,000 1 $6,500 $3,500 2 $3,000 $3,500 3 $3,000 $3,500 4 $1,000 $3,500 Required: (a) Calculate each projects NPV, IRR, MIRR, payback period and discounted pay back? (15 marks) (b) If the projects are mutually exclusive, which project should be chosen under each method of appraisals? (5 marks) What is the difference between primary and secondary markets? Which market does the IPO belong to? (5 marks) (Total: 25 marks)