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1) Your father has recently retired and received RM150,000 EPF payment. He is considering start a small venture, as he is still physically strong. He consulted with friends and former colleagues about this. Prior to this, he has done a quick survey on kind of projects that he can explore. The following are a summary of his findings:

1. He can start up a Sundry Shop in one of the UniMAP hostels in the permanent campus. The estimated initial investment is RM150,000. He can expect cash flows RM45,000 each year for 5 years.

2. He can open up a Book Stall in Kangar that will cater the needs of students ranging from school to university level. The estimated initial investment is RM120,000. He was told that he could expect cash flows RM20,000 in year 1, RM25,000 in year 2, RM35,000 in year 3, RM35,000 in year 4 and RM40,000 in year 5.

3. He can open up a Briyani House, as there is no special restaurant of this kind in Kangar town till now. The estimated initial investment is RM100,000. He was told that he could expect cash flows RM25,000 in year 1, RM35,000 in year 2, RM45,000 in year 3, RM25,000 in year 4 and RM25,000 in year 5.

Your father was not sure which project would most suitable to him and sought your advice knowing that you are taking Financial Statement Analysis course now. You are required to use appropriate capital budgeting techniques and recommend the most suitable project to your father. The discount rate is 12 percent.

please do it urgently