QUESTION THREE For a one product company that moves from being a start-up business to a growing company, to a mature firm and finally to a declining business, explain how you would expect the business risk and financial risk to be during the four phases. (12 marks) (b) Eagle Ltd is considering investing in three mutually exclusive projects whose cash flows are as follows: Year end 2 3 4 5 6-10 each Machine X (1600) 960 320 160 80 160 600 (Shs '000 Machine Y (1600) 80 160 320 960 160 600 Machine Z (800) 480 160 80 40 80 300 Required What do the terms "mutually exclusive" and "independent" in capital budgeting mean? (4 marks) Using the payback method, advice Eagle Ltd. (6 marks) (til) By company X versus Y and X versus Z, explain why the answer in (ii) above can be misleading