Consider the following are mutually exclusive project. Whichever project that will be chosen, a 15% return is required on both investment.

i. Apply the discounted payback criterion and state which investment is chosen. ii. Apply the NPV criterion and state which investment is chosen.

Year Cash Flow (M) 0 (RM350,000) Cash Flow (N) (RM40,000) RM19,000 1 RM30,000 2 RM60,000 RM12,000 RM60,000 RM18.000 4 RM400,000 RM10,500