QUESTION1

a) You have been retained as a lead consultant for a NGO that is considering investing in six different youth HIV/AIDS awareness projects located in six different countries in East Africa. The following information is available concerning the projects.

COUNTRIES	KENYA	UGANDA	TANZANIA	RWANDA	SOUTH SUDAN	BURUNDI
Projects	A (Kshs)	B (U.shs)	C (T.Shs)	D (RWF)	E (Pound)	F(franc)
Average NPV	5 M	9 M	6.5 M	6 M	8 M	7.5 M
Standard Dev	70,000	80,000	90,000	75,000	75,000	85,000

Based on the standard deviation and the coefficient of variation.

i. Comment on the riskiness of the projects and with reason give your expert opinion as to which of the six projects should be selected.

ii. Which measure is more appropriate in this situation and why?

b) Suppose you have been appointed the County Executive in charge of finance in your County. You have allocated funding to two projects, Project A and Project B. By coincidence, Project B happens to be located in your Sub- County. Given below are seventy allocations to various activities in both projects (in Kshs Billions).