XYZ Pharmaceuticals Led. is a multinational pharmaceutical company specializing in the development and manufacturing of innovative dnugs. The company is considering an expansion project to build a state$-$of$-$the$-$art manufacturing facility for a new line of specialty drugs. The project requires a signiffeant upfront investment and is expected to generate substantial cash flows over its useful life. However, XYZ Pharmaceuticals Ltd is concemed about the impact of the project on its eash flow and overall capital budgeting strategy.

From the case study of XYZ Pharmaceuticals

L$.$Id$.$

a$.$ Analyse TWO $(2)$ relationship between cash flow management and capital budgeting decisions in the context of the combony's expansion project.

$(8$ marks$)$

b$.$ Describe THREE. $(3)$ recommendations for XYZ Pharmaccuticals Ltd$.$ on how to optimize its cash flow management and capital budgeting practices to support the successful implementation of the expansion project.

$(12$ marks$)$