Fin 3000 Can you answer the first Q and third Q, please? I hope you can check up these answer of another questions.Class,Due to a format error that I didn’t notice until after class, Problem 3 didn’t show properly. If you have downloadedthe file, please check. Make sure the title has “USE THIS ONE” in it.The correct numbers are as follows:A firm with a WACC of 10% is considering the following mutually exclusive projects. Which project would you recommend and why?2).The projects internal rate of return does not change despite the change in the cost of capital.ÿÿÿÿÿÿÿÿ 3).Mutually exclusive projects.Both projects seem profitable since they have positive net present values and their internal rate of return is greater than the cost of capital but I would recommend project A since it has a higher present value.ÿÿÿÿÿÿÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Questions11-8: Ethical considerationsThe environmental effects should be into consideration when evaluating this project to enable the firm to identify ways to achieve sustainability in their business.ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ The project has positive present values for both cases whether mitigated or not, and the internal rate of returns are above the required rate of return so the project is profitable and should undertaken. To ensure sustainability the environmental effects should be mitigated.11-9: Ethical considerationsThe environmental effects should be into consideration when evaluating this project to enable the firm to identify ways to achieve sustainability in their business.ÿÿ The project has a negative net present value and the IRR is less than the required rate of return for the first five years if mitigation is undertaken. In the other case it seems quite profitable but it may not be sustainable in the long run. The project can be undertaken since it solves the bigger problem of unemployment and the side effects should also be mitigated since though the project may seem unprofitable in the short run, in the long run it will yield high returns.ÿÿÿÿÿ 11-17).Capital budgetingÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 11-20).NPV

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