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answer all the questions please show calculation methods (b) Mr Razique Noor is a financial analysist for Delux Bernux Corporation. The CEO of company requested
answer all the questions please show calculation methods
(b) Mr Razique Noor is a financial analysist for Delux Bernux Corporation. The CEO of company requested him to analyze two mutually exclusive projects; Morita XX Project and Mindmark YY Project. The relevant cash flows for both projects are shown in the following table. The firm's cost of capital is 6 percent. Initial investment (CF) Year 1 2 Morita XX Mindmark YY Project Project RM450,000 RM400,000 Cash Inflows RM120,000 RM90,000 RM120,000 RM100,000 RM120,000 RM110,000 RM120,000 RM120,000 RM120,000 RM130,000 OWN Calculate; (a) Payback Period (4 marks) (b) Net Present Value (10 marks) (c) Profitability Index (3 marks) (d) Briefly explain the best project that Delux Bernux Corporation should consider (2 marks)Step by Step Solution
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