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a. Sabasun Group Berhad is considering to expand business in unrelated industry. It plans to invest in Senegal for its three new hybrid car projects:

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a. Sabasun Group Berhad is considering to expand business in unrelated industry. It plans to invest in Senegal for its three new hybrid car projects: Sabasun X, Sabasun Y and Sabasun Z. The information on projected cash flow available to you are as follows: Year 0:-RM250mil Year1:RM140mil Year 2: RM160mil Sabasun X: Sabasun Y: Year 0:-RM450mil Year1:RM250mil Year 2: RM270mil Yearl:RM130mil Sabasun Z: Year 0:-RM230mil Year 2: RM160mil Discount rate: 10% per year i. Compute NPV for each projects (6 marks) ii. If Sabasun has RM535mil budget, which projects suit its objective? (2 marks) ii. Explain to the Board of Directors the risk associated to the plan investment in international market (4 marks)

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