a) Quto Sdn Bhd is considering one of the two mutually exclusive projects, AB and CD. The company's discount rate is at 10 percent. The expected after-tax cash flows for both projects are as follows: Year AB (RM) co (RM) 0 10,000 17,000 1 1,500 5.000 2 2,000 5,000 3 2,500 5,000 4 5.000 5,000 5 5,000 5,000 As the company's nancial manager, you are required to: i) Calculate the payback back period for project AB and CD. ii) Calculate the Net Present Value for project AB and CD. iii) Determine the best project that Quto Sdn Bhd should invest into. Justify your answer. b) Explain any two (2) criteria that should be considered in making decision under capital budgeting. (4 marks) (8 marks) (4 marks) M mar-kg) DEF Ltd sells furniture to hotels. The following data refers to the budgeted cash payments and receipts for the six-month period ending 30 June 2020. i) Bank balance on 1 January 2020 is judged to be f175,000 overdrawn. ii) Sales for the six months are budgeted as follows: January $425,000 February 1375,000 |March 1400,000 April $275,000 May 1375,000 June (350,000 - 30% are paid in the month of sale - 20% are paid one month after sale - 50% are paid two months after sale. iii) The following miscellaneous payments are budgeted to be: Rant (1,900 every month Rates 12,500 every month Heating and lighting 14,000 for June and January Electrics [1,000 every month Stationery 61,500 every month iv) Two computers are budgeted to be bought in February and March, the former costing $85,000 and the latter costing $100,000. v) Purchases of raw materials each month are budgeted as follows: January E140,000 February $200,000 March 1220,000 April $180,000 May [200,000 June (175,000 Purchases are paid one half in the month of purchase and the other half in the following month. Complete a cash budget for the half year ended 30 June 2020