QUESTION $1$

$($a$)$

Charlton Ltd is considering whether to invest $$7,500$ in a five year marketing project. You are the project manager of this project and you have just gathered the following data and projections relevant to this project:

$(1)$ The unit selling price shall be $$10,$

$(2)$ Quantity sold for year $1$ is $1,000.$ It is expected that the quantity sold will increase by $100$ units per year.

$(3)$ The expected unit variable cost $($marketing and overhead$)$ is $$5$

$(4)$ The projected fixed costs are $$5,000$ per year. This will include annual depreciation of $$1,500$ on the equipment used in this project. No salvage value is expected.

$(5)$ The corporate income tax rate applicable for this project is $20\%.$

The management does not want to use accounting ratios $($for example, the return on investment$)$ to evaluate the project. The required rate of return of this project is $10\%$ per year.

Required:

Using the Net Present Value, Internal Rate of Return and Payback period methods, write a report to the management stating clearly whether the project should be accepted or not.

$($b$)$Dividend policy can be used to maximise the wealth position of equity holders.$$

Critically evaluate the above statement with reference to the determinants of dividend policy.

Help me to answer clearly this required questions