1. Consider a set of five projects: Project M N O P Q Investment Outlay Rs 50,000 100,000 120,000 150,000 200,000 PROBLEMS Expected Annual Cash Rs 20,000 Rs 6,000 5 years Rs 5,000 Inflow Rs 18,000 50,000 30,000 40,000 30,000 Rank the five projects on the dimensions of NPV, IRR, and BCR. The di 2. Give two hypothetical 3-year projects for which the NPV (at discount rat give different ranking. 3. Give two hypothetical 4-year projects for which the BCR and IRR criteria gi Assume that the discount rate is 12 percent. 4. Five projects, A, B, C, D, and E are available to a company. A B 50,000 8,000 10 C 75,000 15,000 8 D 100,000 15,000 12 Initial investment Annual cash inflow Life Salvage value 15,00 Project B is a prerequisite for project E and projects C and D are mutually the projects are independent. If the cost of capital for the firm is 10 p should be chosen at the following budget levels: Rs 200,000 and Rs 250 decision criterion is the net present value. Use the feasible combinations