Question No: 1 The Directors of Cowell Ltd are currently considering three investment projects. The projects are not mutually exclusive and projects 2 and 3 are divisible. The company has a capital budget of RO. 170,000 The following data are available for each project Particulars Project 1 Project 2 Project 3 Estimated annual cash (140,000) (90,000) (120,000) flows (Year 0) Year 1 20,000 70,000 60,000 Year 2 100,000 20,000 50,000 Year 3 70,000 30,000 50,000 The company has an estimated cost of capital of 7% You are required to Calculate the NPV of the above projects and rank the projects as per the highest NPV. Comment on the results