QUESTION 5 (20 Marks) Note: Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. REQUIRED Study the information given below and answer the following questions: 5.4 Refer to yours answers in question 5.3. Which project should be chosen? Why? (1 mark) INFORMATION The following information relates to two capital expenditure projects. Because of capital rationing, only one project can be chosen. The company estimates that its cost of capital is 12%. Ignore taxes. QUESTION 5 (20 Marks) Note: Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. REQUIRED Study the information given below and answer the following questions: 5.4 Refer to yours answers in question 5.3. Which project should be chosen? Why? (1 mark) INFORMATION The following information relates to two capital expenditure projects. Because of capital rationing, only one project can be chosen. The company estimates that its cost of capital is 12%. Ignore taxes