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Question 2 Bunga Berhad is considering three mutually exclusive projects. The initial investment for three...

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Accounting

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Question 2 Bunga Berhad is considering three mutually exclusive projects. The initial investment for three projects is RM 100,000. The after-tax cash inflows associated with each project are shown in the following table: Year Project Project Project Bunga Kertas Bunga Mawar Bunga Raya (RM) (RM) (RM) 1 25,000 0 50,000 2 25,000 0 40,000 3 25,000 0 30,000 4 25,000 0 20,000 5 25,000 250,000 10,000 Bunga Berhad is having a policy of a 5-year acceptable payback period and a required rate of return of 16%. From the above information you are required to: a. the payback for each calculate project period (3 Marks) b. the of each calculate project. net present value (3 Marks) c. indicate which project you would recommend based on your calculation in part (a) and (b). Explain your answer. (4 Marks)

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