QUESTION 3: Use the information below to answer the following questions. YEAR 0 (now) 1 2 3 4 5 6 PROJECT A - 31,950 9,567 10,905 43,500 3,000 21,5?9 28,582 PROJECT B - 31,950 8,000 7,500 7,000 6,500 6,000 5,500 (a) Compute the payback period for both projects. If the desired paybacks are 3.5 years for both projects respectively, which project will be accepted? (b) If the interest (discount) rate is 11.9 %, what is the net present value (NPV) for both project and which project will be accepted using the NPV rule? (0) What are the protability indices for both projects and which projects will be accepted using the protability index rule? (d) State the steps for using the reinvestment method of evaluating projects with different lives. _( QUESTION 4; (a) If a semi-annual coupon bond of 15 years pays a 8.1% coupon, has a face value of GH 1,000 and the discount rate is 11.1%, compute its current price. (b) Common shares of J. Industries ltd. will grow at 16.1% for three years. The growth will drop to 13.5% for another two years. It will later drop to 7.5% and remain constant thereafter. It just paid a dividend of GH 0.39. If the cost of equity is 13.1%, then compute its price. (0) If the firm's capital is made up of 10 of the bonds mentioned in (a) and 500 of the ordinary shares mentioned in (b), compute the weighted average cost of capital. ((1) The firm has 17-year preference shares with a dividend rate of 9.7% with a par value of GH 950. If the discount rate is 11.9%, what should be its fair value