Question: A. GCTU is considering two (2) projects to increase students' enrollment. These projects are: 1. Offering traditional classes from midnight to 6 a.m. or 2.

A. GCTU is considering two (2) projects to

A. GCTU is considering two (2) projects to increase students' enrollment. These projects are: 1. Offering traditional classes from midnight to 6 a.m. or 2. Offering house call classes where the Lecturers would visit students' homes to provide lectures. With the aid of a simple scoring model, use the available information below in the table to determine the following: i. Weighted score for each criteria (2 marks). ii. Total score for each project (1 mark). iii. Indicate which project should be chosen with a justification (2 marks). Project Criteria WeightScore Midnight Classes Time 2 Cost 1 Market Potential 3 2 Convenience 2 2 Prestige 2 Coverage 3 House Calls Time 2 3 Cost 1 Market Potential 3 Convenience 2 3 Prestige 2 3 Coverage 3 Page 4 of 8 B. The Ultimate Choice Limited (UCL) is contemplating two different projects and decides to perform a financial analysis to determine which is more financially lucrative. Project A and B have the cash flows as shown and UCL uses a required rate of return of 10%. Compute the internal rate of return for both projects to determine which is worth of funding. (10 marks). Year 0 1 2 3 4 5 A -100,000 20,000 50,000 50,000 25,000 500,000 B -400,000 75,000 100,000 150,000 150,000 750,000 C. Prinstell is contemplating two different projects and decides to perform a financial analysis to determine which is more financially lucrative. Project A and B have the cash flows as shown and Prinstell uses a required rate of return of 10% and an inflation rate of 4%. Compute the payback in years and the net present value for both projects and offer advice as to the best course of action. (10 marks). Year 0 1 2 3 4 A -$100,000 $20,000 $50,000 $50,000 $25,000 $500,000 B -$400,000 $75,000 $100,000 $150,000 $150,000 $750,000 5 Question 4

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