Three projects are available for investment in Minn Company. Details are provided Ksh. Project A...

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Three projects are available for investment in Minn Company. Details are provided Ksh. Project A B Initial investment 350,000 200,000 300,000 Present value of Annual cash flows 825,000 675,000 725,000 Internal rate of return 20% 18% 24% (Ksh) The company has 15% cost of capital. The company has limited capital of Ksh 500,000. Three financial analysts, Marth, Mary and Joseph have contradicting proposal. Mary proposes the company to undertake projects A & B; Martha proposes B & C While Joseph proposes project A &C. Between Martha, Mary and Joseph, who would you support and why? C 200 000 300 000 Project Initial investment Ksh Present value of Annual cash flows (Kshi Internal rate of retium 825 000 675 000 725 000

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