Question: Please can you answer this question with all workings :) 1. Investment Appraisal Techniques [25 Marks] 1} Shire plc has projected the cash ows of

Please can you answer this question with all workings :)

1. Investment Appraisal Techniques [25 Marks] 1} Shire plc has projected the cash ows of Projects A, B, and C as follows. Suppose the relevant discount rate is 12% peryear. Year Project A (} Project B () Project C (Q 0 -200,000 -350,000 200,000 1 135,000 240,000 140,000 2 135,000 240,000 125,000 a} Calculate the NPV and protability index for each of the three projects. [6 Marks] 1}} Suppose these three projects are independent, which project{s} should the company accept based on the protability index rule? Briey explain your answer. [2 Marks] c} Suppose these three projects are mutually exclusive. Which project{s} should the company accept? Briefly explain your answer. [2 Marks] d} Suppose the budget for these projects is $400,000. The projects are not divisible. Which project(s} should he accepted? What is the total NPV earned? Explain your answer. [5 Marks] 2} How is the internal rate of return of a project calculated? What must one look out for when using the internal rate of return rule? Explain your answer with examples. [10 Marks]

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