Anne Company trying to decide which project should be taken out of three possible investments. The initial investment would be RM 22 000 and the cost of capital each 10%.

Year Project A Project B Project C

1 3 000 9 000 10 000

2 4 000 10 000 10 000

3 8 000 13 000 13 000

4 12 000 8 000 -

5 9 000 - -

6 10 000 - -

You are required to calculate:

i) Net Present Value.

ii) Payback Period.

iii) Based on Net present value calculation, explain the project should accept by the company.