Fuzuki PLC is considering two mutually exclusive investment projects: Project: Project Life Initial investment in plant and equipment 6 years 000 200,000 B 4 years L000 100,000 Net cash flows: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Net Present Value (10%) Internal Rate of Return (approx) 25,500 27,500 32.500 42,500 69,500 161,500 16,512 18.8% (a) Determine the net present value of project A using Fuzuki's required rate of return on projects of 10% (show all workings). (5 marks) (b) Determine the internal rate of return on project A (show all workings). Which investment should be undertaken? (5 marks) (d) Explain how a firm can select the best project(s) from a set of investment projects when there are limited funds available so that not all projects with a positive NPV can be selected (5 marks) (e) Critically discuss net present value, internal rate of return and payback period as criteria for investment appraisal. (10 marks) Fuzuki PLC is considering two mutually exclusive investment projects: Project: Project Life Initial investment in plant and equipment 6 years 000 200,000 B 4 years L000 100,000 Net cash flows: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Net Present Value (10%) Internal Rate of Return (approx) 25,500 27,500 32.500 42,500 69,500 161,500 16,512 18.8% (a) Determine the net present value of project A using Fuzuki's required rate of return on projects of 10% (show all workings). (5 marks) (b) Determine the internal rate of return on project A (show all workings). Which investment should be undertaken? (5 marks) (d) Explain how a firm can select the best project(s) from a set of investment projects when there are limited funds available so that not all projects with a positive NPV can be selected (5 marks) (e) Critically discuss net present value, internal rate of return and payback period as criteria for investment appraisal. (10 marks)