Table Q4 projects for consideration Project Capital cost () B D E F G NPV/Capital 1.29 0.52 0.66 0.14 3.12 2.07 0.72 58,000 41,000 49,000 78,000 22,000 33,000 19,000 The directors agree a budget of 100,000 for the next financial year, and to prioritize on projects with the highest return on capital employed (ROCE), which they define as Net Present Value divided by Capital Cost. (a) Based upon your table, answer the following: (i) Draw a table listing the projects in the order of preference for the directors. [40%] (ii) Recommend which projects Tooley Manufacturing Ltd should proceed with, in view of the available budget. [25%] (iii) If the opportunity arose that the budget could be increased by 15%, explain whether your recommendation remain the same or different. [10%] (b) Explain why it might be more desirable to run a project with a low ROCE, rather than not spend to budget, and describe ONE additional piece of information that the Directors might want before they make a decision to proceed with any projects. [25%] Table Q4 projects for consideration Project Capital cost () B D E F G NPV/Capital 1.29 0.52 0.66 0.14 3.12 2.07 0.72 58,000 41,000 49,000 78,000 22,000 33,000 19,000 The directors agree a budget of 100,000 for the next financial year, and to prioritize on projects with the highest return on capital employed (ROCE), which they define as Net Present Value divided by Capital Cost. (a) Based upon your table, answer the following: (i) Draw a table listing the projects in the order of preference for the directors. [40%] (ii) Recommend which projects Tooley Manufacturing Ltd should proceed with, in view of the available budget. [25%] (iii) If the opportunity arose that the budget could be increased by 15%, explain whether your recommendation remain the same or different. [10%] (b) Explain why it might be more desirable to run a project with a low ROCE, rather than not spend to budget, and describe ONE additional piece of information that the Directors might want before they make a decision to proceed with any projects. [25%]