(a)Bionictech Sdn Bhd is a pharmaceutical company operated in Malaysia is currently participate in developing the covid19 vaccine. The company anticipating an earning of RM17,500,000 every year for 5 years. The cost incurred for this project was RM42,000,000 and cost of capital was 15 percent. Briefly explain the decision of Bionictech involving in this project by calculatingthe internal rate of return.

(5marks)

(b)Nikita Berhad is evaluating a project which expected to earn a series of cash inflows as shown in the table below. The initial investment of this project is RM52,300.

Year Cash Inflow (RM)

1 12,500

2 20,750

3 35,020

4 36,000

5 37,500

6 38,800

If the required rate ofreturn is 12 percent, determine whether this project is profitable or loss by calculatingthe net present value and profitability index techniques.

(10marks)

(c)ListFOUR (4)assumptions ofefficient market and briefly explain the component in efficient market hypothesis.

(10 marks)