5. Reading Builders is considering three possible investment projects: A, B and C. The expected pattern of cash flows for each project is:

Project cash flows

Project	A	B	C
	m	m	m
Initial outlay	(20)	(20)	(24)
1 years time	11	12	9
2 years time	5	7	9
3 years time	7	7	11
4 years time	6	6	13

The business has a cost of finance of 7% and the capital expenditure budget for next year 44 million.

Required:

a) Which investment project(s) should the business undertake assuming:

(i) Each project is divisible

(ii) Each project is indivisible. (20 marks)