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Question No 02 ( 10 Marks) The treasurer of Lanka Bangla Finance, Inc., has projected the cash flows of projects A, B, and as follows:
Question No 02 ( 10 Marks) The treasurer of Lanka Bangla Finance, Inc., has projected the cash flows of projects A, B, and as follows: Year Project A Project B Project C 0 - 150,000 -300,000 - 150,000 110,000 200,000 120,000 2 110,000 200,000 90,000 1 a) What is the regular payback period for each of the projects? B) What is the discounted payback period for each of the projects? C) If the three projects are independent and the cost of capital is 12%, which project or projects should the firm undertake? D) If the two projects are mutually exclusive and the cost of capital is 8%, which project should the firm undertake? E) Suppose Lanka Bangla budget for these projects is $450,000. The projects are not divisible. Which project(s) should Lanka Bangla accept? f) Which project should accept based on IRR
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