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Company Xin Xin is considering these two mutually exclusive projects which require an initial outlay of RM135,000. Below is the cash flow expected from each
Company Xin Xin is considering these two mutually exclusive projects which require an initial outlay of RM135,000. Below is the cash flow expected from each project. The cost of capital is 15 percent.
Year | Putra Project | Perdana Project | |
1 | RM 38000 | RM30000 | |
2 | RM 38000 | RM35000 | |
3 | RM 38000 | RM39000 | |
4 | RM 38000 | RM48000 | |
5 | RM 38000 | RM50000 | |
| (6 Marks) (6 Marks) (3 Marks) |
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