The table below shows the NPV and IRR for the three projects$-$ A$,$ B and C$.$ The

opportunity cost of capital for the three projects is $15\%.$ Assuming the projects are

mutually exclusive, which project would be economically feasible and why? $(5$ marks$)$

Project A Project B Project C

NPV $30,00031,50035,000$

IRR $22\%30\%20\%$

b$.$ Describe the two main ways in which a firm can return cash to shareholders. Describe

some potential considerations for a firm when deciding on its dividend policy.

$(10$ marks$)$

c$.$ A firm is expected to pay $5/$share in dividends next year. Those dividends are

expected to grow by $10\%$ for the next three years and $2\%$ thereafter. If the discount

rate is $10\%,$ what is the current price of this security? Solve all questions please.