Question: SECTION ONE- ANSWER BOTH QUESTIONS QUESTION ONE XYZ Ltd has six independent projects whose financial data is as follows: XYZ Ltd has six independent projects

SECTION ONE - ANS WER HOTH QUESTIONS QUESTION ONE XYZLtd has six independent projects whose financial data is as follows: All the projects are divisible. The firm's policy is to utilize only retained profits to finance its projects. The firm's cost of capital is 15%. REQUIRED: a) Calculate the present value of the cash flows of each investment/project. (18 marks) b) Calculate the NPV of each investment / project and select which ones should be accepted. ( 7 marks) (Total: 25 marks) SECTION ONE - ANSWER BOTH QUESTIONS QUESTION ONE XYZ Ltd has six independent projects whose financial data is as follows: All the projects are divisible. The firm's policy is to utilize only retained profits to finance its projects. The firm's cost of capital is 15%. REQUIRED: a) Calculate the present value of the cash flows of each investment/project. (18 marks) b) Calculate the NPV of each investment / project and select which ones should be accepted. (7 marks) (Total: 25 marks)
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