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Bright Sdn. Bhd. has three projects under consideration. The companys cost of capital is 15%...

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Finance

  1. Bright Sdn. Bhd. has three projects under consideration. The companys cost of capital is 15% with an initial investment of RM50,000. The cash ows for each project are as follows:

Year

Project A (RM)

Project B (RM)

Project C (RM)

1

18,000

0

25,000

2

18,000

0

20,000

3

18,000

0

18,000

4

18,000

30,000

15,000

5

18,000

30,000

10,000

You are required to calculate:

  1. Payback period for each project.

  1. Net present value for each project.

  1. Internal rate of return for Project A.

( 3 )

( 9 )

( 5 )

  1. Based on the payback period and net present value methods, which project should be selected? Explain your answer.

( 3 )

( Total / Jumlah: 20 )

Answer & Explanation Solved by verified expert
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