Answer must be in finance format. ASAP. thank you so much. 3. Sunsuria Corporation is one of
Fantastic news! We've Found the answer you've been seeking!
Question:
Answer must be in finance format. ASAP. thank you so much.
Transcribed Image Text:
3. Sunsuria Corporation is one of the investment companies in Malaysia. The main business of the company is to invest in numerous projects and earn a return from their investments. Currently, Sunsuria Corporation is considering investing in some of the renewable energy projects proposed by several project owners. After the initial screening process, now the company has to decide which one of the three proposed projects as listed in TABLE 4 should be invested in. TABLE 4 is the details of the estimated cash layout and cash inflows for these three projects. The cost of capital for the company is 10%. Using the information provided in TABLE 4 to solve the following questions. TABLE 4 Year Initial Investment 1 2 3 4 5 (i) (ii) (iii) (iv) Project ABC (RM) (580,000.00) 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 Project LMN (RM) (650,000.00) 300,000.00 250,000.00 200,000.00 150,000.00 100,000.00 Project XYZ (RM) (590,000.00) 100,000.00 120,000.00 250,000.00 350,000.00 150,000.00 Calculate the paybacks periods for all projects in TABLE 4. [6 Marks] Calculate the Net Present Value (NPV) for all projects in TABLE 4. [12 Marks] Calculate the Profitability Index for all projects in TABLE 4. [6 Marks] Suggest to the top management of Sunsuria Corporation which project should be invested in first if the desired payback period is 3 years. Kindly Justify your suggestion and provide the clarification of the decision-making tools that you use to make the suggestion. [6 Marks] 3. Sunsuria Corporation is one of the investment companies in Malaysia. The main business of the company is to invest in numerous projects and earn a return from their investments. Currently, Sunsuria Corporation is considering investing in some of the renewable energy projects proposed by several project owners. After the initial screening process, now the company has to decide which one of the three proposed projects as listed in TABLE 4 should be invested in. TABLE 4 is the details of the estimated cash layout and cash inflows for these three projects. The cost of capital for the company is 10%. Using the information provided in TABLE 4 to solve the following questions. TABLE 4 Year Initial Investment 1 2 3 4 5 (i) (ii) (iii) (iv) Project ABC (RM) (580,000.00) 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 Project LMN (RM) (650,000.00) 300,000.00 250,000.00 200,000.00 150,000.00 100,000.00 Project XYZ (RM) (590,000.00) 100,000.00 120,000.00 250,000.00 350,000.00 150,000.00 Calculate the paybacks periods for all projects in TABLE 4. [6 Marks] Calculate the Net Present Value (NPV) for all projects in TABLE 4. [12 Marks] Calculate the Profitability Index for all projects in TABLE 4. [6 Marks] Suggest to the top management of Sunsuria Corporation which project should be invested in first if the desired payback period is 3 years. Kindly Justify your suggestion and provide the clarification of the decision-making tools that you use to make the suggestion. [6 Marks]
Expert Answer:
Answer rating: 100% (QA)
The Payback period the NPV are worked out for the three projects in the tables given below Project A... View the full answer
Related Book For
Managing Business Ethics Making Ethical Decisions
ISBN: 9781506388595
1st Edition
Authors: Alfred A. Marcus, Timothy J. Hargrave
Posted Date:
Students also viewed these finance questions
-
A prize is given for the first person to draw a red marble out of box that they can't see inside. The organizers put 120 yellow marbles, 210 blue marbles, 301 green marbles, and 7 red marbles in the...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
The beam shown below is supported by a pin at A and a roller at B. The weight of the beam is 12 kN and a 15 kN force is applied 3 m to the right of A as shown. Determine the reaction forces at A and...
-
Businesses actively recruit business students with well-developed higher-order cognitive skills (HOCS) such as problem identification, analytical reasoning, and content integration skills....
-
From the data shown, determine the economic service lives of the defender and challenger. Values in the table are AW values, not individual year-end values. AW of Defender, $ AW of Challenger, $...
-
How does the learning process of integrating differ from institutionalizing?
-
Davison Inc. recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned...
-
Evander Inc. has decided to use the high - low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as...
-
Determine the force in members GF, CF, and CD of the roof truss and indicate if the members are in tension or compression. 1.5 kN 1.70 m 2 kN 1.5 m 0,8 m G. -1 m- 2 m 2 m
-
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses Purchases of raw materials Direct labor...
-
A 45-kg snowboarder starts at rest and slides down a frictionless 25m-high slope. He collides with a 65-kg ski patroller who was stopped at the bottom of the slope. What is their velocity immediately...
-
4. Consider the following NLP problem: subject to Maximize x1 + x2 X1 x2" + 1 9 16 4 a. Find the Lagrangian. What is the sign of your Lagrange multiplier? b. Formulate the Lagrange relaxation....
-
Do you feel there is still a need for unions and collective bargaining? Explain and justify your answer.
-
1. Write a program that calculates the function Y. The user must enter the value of X. X+1 X > o Y= X2+2X+10 X
-
How does the design and optimization of corrosion inhibitors, including organic compounds and surface treatments, leverage principles of molecular design, adsorption kinetics, and surface chemistry...
-
In 2024, Ryan Management collected rent revenue for 2025 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants...
-
Cornell and Roberts are partners who agree to admit Stanley to their partnership. Cornell has a capital balance of $80,000 and Roberts has a capital balance of $120,000. Cornell and Roberts share net...
-
You work for Brighten Enterprises, a Fortune 500 company with annual sales of more than $23 billion. Your company has been on the cutting edge in new product innovation. It has grown rapidly and has...
-
ACI is a leading supplier of components for the telecommunications industry. It sells components to companies like Alcatel, Northern Telecom, and Ericsson, who put the components into the equipment...
-
You are a regional manager for a global company that sells soaps and other personal hygiene products. You have recently read about the base of the pyramid approach to business and are intrigued by...
-
Who are the members of an audit committee? What things might an auditor discuss with them during the initial meeting? What things might be discussed during the course of an audit?
-
What client documents should be reviewed to obtain knowledge as suggested by ISA 310?
-
(Financial planning) You are 30 years old today and are considering studying for an MBA. You have just received your annual salary of $50,000 and expect it to grow by 3% per year. MBAs typically earn...
Study smarter with the SolutionInn App