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1. Following are the data for two projects taken from Bennet Company Project A- (RM) 42,000 Project B- (RM) 45,000 Initial Investment Year 12 24

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1. Following are the data for two projects taken from Bennet Company Project A- (RM) 42,000 Project B- (RM) 45,000 Initial Investment Year 12 24 34 42 5 Operating Cash Inflow 14,000 28,000 14,000 12,000 14,000 10,000 14,000 10,000 14,000 10,000 Calculate and determine which project is better for each of the following capital budgeting techniques: i. Accounting Rate of Return (Assume salvage value = 0) ii. Payback Period iii. Net Present Value (Use cost of capital = 10%) iv. Profitability Index (Use the same cost of capital in iii. above)

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