XYZ Pharmaceuticals Ltd$.$ is a multinational pharmaceutical company specializing in the development and manufacturing of innovative drugs. 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 significant upfront investment and is expected to generate substantial cash flows over its useful life. However, XYZ Pharmaceuticals Ltd$.$ is concerned about the impact of the project on its cash flow and overall capital budgeting strategy.

From the case study of XYZ Pharmaceuticals Ltd$.,$

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

$(8$ marks$)$

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

$(12$ marks$)$