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a) Belton Sda Bhd is considering one of the two mutually exchusive projects, 7-ELEVEN and SPEEDMART. The company's discount rate is at 6%. The expected
a) Belton Sda Bhd is considering one of the two mutually exchusive projects, 7-ELEVEN and SPEEDMART. The company's discount rate is at 6%. The expected after tax cash flows for both projects are as follows: Year 7-Eleven (RM) Spesdraact (RM) 0 (35,000) (35,000) 1 12,500 8,000 2 10,000 8,000 3 8,500 8,000 4 5,000 8,000 5 8,000 8,000 As the company's financial manager, you are required to: i) Calculate the payback back period for proje Eleven and Speedmart. (4 marks) ii) Calculate the Net Present Value for project ( 6 marks) and Speedmant. iii) Calculate the Internal rate of return for pppr (6 marks) ELEVEN and Speedmart. iv) Determine the best project that Belton $dn Bhd should invest into. Justify
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