Question: QUESTION 5 (20 Marks) Note: Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. INFORMATION The

 QUESTION 5 (20 Marks) Note: Where applicable, use the present value

QUESTION 5 (20 Marks) Note: Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. INFORMATION The following information relates to two capital expenditure projects. Because of capital rationing, only one project can be chasen. The company estimates that its cost of capital is 12% ignore taxes. TOTAL: 100 END OF PAPER

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