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You are the Project Analyst at Nangina Lid. where two projects are being considered for investment by the Board. Investment details of these projects are

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You are the Project Analyst at Nangina Lid. where two projects are being considered for investment by the Board. Investment details of these projects are set out below: Investment Present value of Present value of Present value of Net present value of outlay in Period 1 outlay in period 2 outlay in period 3 investment at t=0 Ksh'000 Ksh'000 Ksh'000 Ksh'000 A 30,000 10,000 10,000 56, 000 B 20,000 4, 000 2, 000 8, 000 Capital investment limits as set by the. Board of Nangina Ltd. as follows: Period 1 Ksh 36,000,000 Period 2 Ksh 8,000,000 Period 3 Ksh 6,000,000 Assuming that the capital investment limits are absolute and cannot be repeated more than once: a. Determine the best combination of these projects in order to maximize the net present value (NPV) and find that maximum NPV (15 Marks). b. Write a brief paper to the Board of Nangina Ltd. explaining why you have chosen to use the NPV approach to project selection in the above analysis

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