1. Light and easy Sdn bhd is considering the following mutually exclusive project, project mega and project mendung. Both projects require RM30,000 for the initial investment. The annual after-tax cash flows of these two projects are as follows.

Year Projects mega (RM) Project mendung (RM)

1 15,000 10,000

2 10,000 10,000

3 5,000 10,000

4 5,000 -

5 5,000 -

From the above information, calculate

a) NPV for both projects, if the requires rate of return is 12%

b) Which project would you choose? Why?