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Use the FIN 3701/101 the following information to answer questions 12 to 16. Choose the best option from given answers to answer each question. Country

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Use the FIN 3701/101 the following information to answer questions 12 to 16. Choose the best option from given answers to answer each question. Country Wallpapers is considering investing in one of three projects, namely projects E,For G. The company's cost of capital is 15%, and the risk-free rate is 10%. The company has gathered the following cash flow and risk index data for each project Mean Project E Project F Project G (R15 000) (R11 000) (R19 000) R6 000 R6 000 R4 000 R6 000 R4 000 R6000 R5000 R6 000 R8 000 R6 000 R2 000 R12000 Risk index (beta) 1.80 1,00 12. Calculate the net present value of each project using the company's cost of capital. 1. NPV R2 130: NPV R1 678; NPV R1 144 2. NPVE -R2 320; NPVF R1 678: NPV R1 144 3. NPVE R2 130; NPV -R1 9500: NPV R1 144 4. NPV R2 130; NPV R1 678: NPV -R1 511 13. Which project (s) is (are) acceptable? 1. E and G 2. E and F 3. F and G 4. E, F and G 14. Use the risk-adjusted discount rate Rf +(b x (Km R) to calculate the risk. (RADR adjusted NPV for each project. 1. R734; NPVF R1 678; NPV -R2 138 NPVE 2. NPVE R834; NPVF R1 678; NPVG R2 138; 3. NPV R834; NPVF -R1 878; NPVG R2 138; 4. NPVE R834; NPVF R1 678; NPVG. R2 438

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