Problem: You are the CFO of a reputable publicly traded enterprise and are planning on choosing next year's capital budgeting projects. The Board of Directors have set a budget of AED 1.2M to invest. Given the below, which projects should you choose? • The enterprise has 20,000 bonds outstanding with a 6% annual coupon rate, 10 years to maturity, and AED 1,050 market price. • The company's 50,000 shares of preferred stock, pay an AED 2 annual dividend, and sell for AED 25 per share. • The company's 600,000 shares of common stock sell for AED 30 per share and have a beta of 1.5. The government treasury bills rate is 5%, and the market return is 14%. • Corporate Tax in UAE is 9% for all types of firms. Cashflows from year 1 to year 4 Project's Cost 1. New Outlet 200,000 800,000 2. Refurbishment 300,000 800,000 3. Delivery Fleet 250,000 400,000 4. New Software 150,000 400,000