SCF Ltd is evaluating the following projects. Past practice has been to accept all projects with IRRs greater than the firm's cost of capital of All figures are in millions. Cash outflows are indicted as negative values and cash inflows as positive values.
NOTES: Negative values are cash outflows; Positive values cash inflows Place ONLY YOUR ANSWERS NO CALCUALTIONS in the boxes provided.
Required:
a The following three mutually exclusive projects have very simple cash flows. Fill in the blank cells and explain which project should be chosen and why. marks
tableProjecttableYear OCash flowtableYear Cash flowtableYear Cash flowNPV @ IRR,PIABC
b Should SCF Ltd accept Project Z Fill in the blank cells and explain your decision. marks
tableProjectNPV @ IRR
