calculate the Net present value for all three projects, the WACC (discount factor) is 4.25% pick which project is the best one,

please show all your working out if possible

thankyou and have a nice day :)

ignore the secoung sheet of paper

Project summaries ('000 unless stated otherwise) The projects all have a limited lifespan and are indivisible. The key figures from the project proposals are: Project A Project B Project C Project life (years) 5 5 Capital expenditure in to 200,000 250,000 400,000 Residual value 60,000 70,000 200.000 Additional working capital 60,000 50,000 100,000 Annual revenues 300,000 425,000 475,000 Gross profit % 45% 42% 47% Additional annual fixed costs 40,000 70,000 80,000 5 Mashaba plc's shares have a par value of 0.20. The loan notes have a market value equal to their nominal value. Mashaba plc's policy is to depreciate capital expenditure in equal amounts over the estimated useful life of the asset. This policy matches the tax regulations that also state that tax must be paid at the appropriate rate on accounting profits on the last day of the year in which they are earned. Case study information for Mashaba plc Mashaba plc has been listed on a stock exchange for 20 years and now has a large number of diverse shareholders none of whom exceeds a 5% stake. The Board of Directors has pursued a policy of financing all investments through debt and not by raising new equity capital. The company's loan notes are rated A and the Board is determined to maintain that investment rating. It has been advised that if seeks to borrow in excess of a further 600m it will be down graded and accordingly the maximum funds available to invest are 600m. The company has identified three indivisible projects for investment. Summarised financial statements for the last financial year for Mashaba plc Income statement '000 Revenue 1,000,000 Cost of sales (550,000) Gross profit 450,000 Overhead expenses (180,000) Operating profit 270,000 Interest payable (150,000) Profits before tax 120,000 Corporation tax (24,000) Earnings 96,000 Dividends (50,000) Retained earnings 46,000 Statement of financial position Share capital (par value 0.20) 30,000 Share premium 250,000 Retained earnings 500,000 Total equity 780,000 Non-current liabilities 10 year loan notes 5% 3,000,000 Capital employed 3,780.000 5.00 Other information Current share price Interest rate on loan notes Beta factor for Mashaba plc Equity risk premium Yield on government bonds Tax rate 5.0% 1.30 2.5% 2.0% 20.0%