Explain, using examples, the difference between a top-down approach and a bottom-up approach to equity valuation.

b) There are four principles that underlie the concept of efficient markets. Outline, using examples, each principle.

c) You are considering investing in a project whose cash flows are given below:

dISCOUNT RATE	5%
Year
0	-800
1	200
2	250
3	-200
4	300
5	450

i. Calculate the present value (PV) of the future cash flows of the project ii. Calculate the net present value (NPV). Should you undertake the project? (10 marks)