Lilac Tinkerbelle Sdn Bhd are evaluating the data for two projects as follows: Project A...

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Accounting

Lilac Tinkerbelle Sdn Bhd are evaluating the data for two projects as follows: Project A (RM) Project B (RM) Initial Investment 42,000 45,000 Year Operating Cash Inflow 1 14,000 28,000 2 14,000 12,000 3 14,000 10,000 4 14,000 10,000 5 14,000 10,000 For each project, calculate the following capital budgeting techniques:

(a) Accounting Rate of Return (Assume salvage value = 0) (4 marks)

(b) Payback Period (2 marks)

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