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SCF Ltd. is evaluating the following projects. Past practice has been to accept all projects...

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Finance

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 $10 % .$ 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. $(10$ marks $)$

$\$ table $[[$ Project $, \$ table $[[$ Year O $], [$ Cash flow $]], \$ table $[[$ Year $1], [$ Cash flow $]], \$ table $[[$ Year $2], [$ Cash flow $]],$ NPV @ $10 %,$ IRR,PI $], [$ A $, (72.0), 90.0, 0.0,,,], [$ B $, (150.0), 180.0, 0.0,,,], [$ C $, (150.0), 0.0, 208.9,,,]]$

$($ b $)$ Should SCF Ltd $.$ accept Project Z $?$ Fill in the blank cells and explain your decision. $(3$ marks $)$

$\$ table $[[$ Project $, C_{0}, C_{1},$ NPV @ $10 %,$ IRR $], [Z, 100.0, (125.0),,]]$

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