No need to answer the 3 questions specified. just F&D

Sabrina Ansures Ar 3 as 1. (a) Consider Table 1. You are the chief financial officer (CFO) of a medium sized manufacturing firm and you can invest in either project 1 or 2, but not both. The NPV and IRR for both project are presented in Table 1. The discount rate is 10% for each project. Which project would you invest in and why? Table 1 Project 1 Project 2 NPV (E) 10,000 12,000 IRR (%) 16% 12% Discount rate (%) 10% 109 (b) Consider Table 2. Calculate the operating and cash cycles for Firm A. Detail all calculations that you use. Table 2 Firm A 400 200 Sales Cost of goods sold Accounts receivable Inventories Accounts payable 90 60 (c) Consider Table 2 and Firm A. Outline three ways in which Firm A could potentially reduce its operating cycle. (d) In their 2010 survey of Irish corporate financing practices, Kester and Robbins (2010) highlight that 50% of firms use the CAPM to calculate their cost of equity capital and 5.6% of firms use the Gordon growth model. Outline how a firm can use the Gordon growth model to derive an estimate of the cost of equity capital. (e) Define an operating lease and list the advantages of lease financing (1) Invitation Inc, sells 2,500 items during a 200-day period. Ordering costs are 150 per order and holding costs are 10 per unit per 200 days. Calculate Economic Order Quantity (EOQ), order costs and holding costs. Suppose Invitation Inc, changes its order level from EOQ to 100. How do order and holding costs change? Explain your