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Question 5 (20 marks) Bonds-Jovi under-cover-wear business has a NPV benchmark for future investments of 7%. They are considering the following alternative investments: Required: a)

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Question 5 (20 marks) Bonds-Jovi under-cover-wear business has a NPV benchmark for future investments of 7%. They are considering the following alternative investments: Required: a) Calculate the NPV for each investment [ 16 marks] b) Which investment should Bonds-Jovi choose? Why? [2 marks] c) Considering the above information and your calculations, identify any risks involved in using NPV as the only decision rule. [2 marks]

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