Question: Hi, please help me do this question and show the working of calculation and formula, thanks. QUESTION 3 (25 MARKS) (UNIT 4) (a) Explain the
Hi, please help me do this question and show the working of calculation and formula, thanks.

QUESTION 3 (25 MARKS) (UNIT 4) (a) Explain the important of capital budgeting decision for a firm. Elaborate why the capital budgeting errors are so costly. (4 marks) (b) Discuss risk adjustments in capital budgeting. (6 marks) (c) Your company has projected the following cash flows of project A, B and C as follows. The required rate of return on all projects is 13%. Calculate; Year 0 1 2 3 4 Project A (90,000) 30,000 30,000 30,000 30,000 Project B (100,000) 40,000 40,000 30,000 30,000 Project C (80,000) 25,000 20,000 50,000 10,000 (i) Net Present Value (NPV) (6 marks) Page 3 of 4 BBF302/05 FINANCIAL MANAGEMENT AND ANALYSIS JANUARY 2021 ASSIGNMENT 2 (ii) Profitability Index (3 marks) (iii) Internal rate of return (3 marks) (iv) Justified which project we should accept or reject. 4/4 na
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
