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Company MSU 2021 has three projects under consideration. The cash flows for each project are shown in the following table 1. The company has a
Company MSU 2021 has three projects under consideration. The cash flows for each project are shown in the following table 1. The company has a 16% cost of capital. Table 1 Project M Projects Project U Initial investment (CFO) Year (t) 1 1 2 -RM40,000 -RM40,000 -RM40,000 Cash inflows (CFt) (RM) RM13,000 RM7,000 RM19,000 RM13,000 RM10,000 RM16,000 RM13,000 RM13,000 RM13,000 RM13,000 RM16,000 RM10,000 RM13,000 RM19,000 RM7,000 3 4 5 (iv) Calculate each project profitability index (PI) Calculate each project internal rate of return (IRR)
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