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Consider two projects, A and B. Project A t in years Project B t in years 0 1 2 Cash Flow (in RM) - 4000
Consider two projects, A and B. Project A t in years Project B t in years 0 1 2 Cash Flow (in RM) - 4000 2000 4000 0 1 2 Cash Flow (in RM) - 2000 - 4000 X (a) Find the value of X if the net present values for both projects is the same at 10% annual effective rate of interest (2 marks) (b) Find the internal rate of return for Project A. (2 marks) Based on the answer of X obtained in (a), find the internal rate of return for Project B. (2 marks) (c) (d) Given that the net present values for both projects is the same at i % annual effective rate of interest. Find if X = 8200. (2 marks) Find the value of X if the internal rate of return for both projects is the same. (2 marks)
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