Questions 2. You are the newly recruited Finance Officer of FYG Pharmaceutical Ltd, a household pharmaceutical enterprise based in Kumasi. You ascertained that FYG Pharmaceutical Ltd is considering investing GH5,175,000.00 in a COVID-19 related vaccine project that is expected to yield an average return of 6.67% on the investment for four years. At the end of this period, the project shall be liquidated for a value determined as 25% of the initial investment. FYG Pharmaceutical Ltds weighted average cost of capital (WACC) is 10%.

Required: a. With the aid of memo, you are required to submit for the attention of the Finance Director your estimation of the present value of FYG Pharmaceutical Ltds cash flow expectations at the end of the fourth ear.

b. In your memo, suggest three (3) potential sources of finance for this project. You are to include your possible recommendation(s) together with reasons.

c. Differentiate between capital market and primary market.