(13 MARKS QUESTION 3 A firm is considering the following projects, all of which are independent of one another. Available funds are limited to SR3 million only in this capital budgeting period, but future periods will have no capital budget constraints. ACCEPT Initial Capital Outlay in SAR Total Present Value of Future Free Cash Flows in SAR Project NPV in SAR PI IRR REJECT AB 500,000 575.000 75.000 1.150 14.75% ACCEPT CD 900,000 1.044,000 1.160 12.32% EF 800.000 900.000 10.25% GH 300.000 50.000 1.167 11.25% ACCEPT IJ 600.000 590.000 -10.000 0.983 9.20% KL 700.000 900.000 200.000 15.15% ACCEPT MN 600,000 280.000 1.467 13.00% A. FILL the shaded areas in the table above with appropriate values and ACCEPT / REJECT decision (5 marks) B. ACCORDING TO NPV CRITERIA, which projects would be selected base on the capital rationing constraint above? CALCULATE THE TOTAL NPV VALUE for the selected projects according to this ranking. (3 marks) NPV RANKING 2 3 4 5 6 7 PROJECT CD IJ TOTAL NPV VALUE FOR SELECTED SET OF PROJECTS ACCORDING TO NPV CRITERIA SAR C. ACCORDING TO PROFITABILITY INDEX (P.1) CRITERIA, which projects would be selected base on the capital rationing constraint above? CALCULATE THE TOTAL NPV VALUE for the selected projects according to this ranking. (3 marks) 2 3 4 5 6 7 P.I RANKING PROJECT CD IJ TOTAL NPV VALUE FOR SELECTED SET OF PROJECTS ACCORDING TO P.I CRITERIA SAR D. From you calculation in B and C. Which set of projects would you choose under this capital constraint and explain why. (2 marks)