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Detail as possible since I don't really understand how to do the right way Year QUESTION 2 Chapter 12 capital budgeting a) SUNSHINE Construction LTD

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Detail as possible since I don't really understand how to do the right way

Year QUESTION 2 Chapter 12 capital budgeting a) SUNSHINE Construction LTD is planning to venture into new project and is currently gauging the viability and profitability of two mutually exclusive projects. Provided below is the after tax cash flow for both systems, Project A (RM) Project B (RM) 0 (580,000) (600,000) 1 100,000 200,000 2 150,000 200,000 3 200,000 200,000 4 230,000 200,000 270,000 200,000 5 CONFIDENTIAL CONFIDENTIAL 5 DEC 2019/FIN 242 The firm's cost of capital is 12 percent. Calculate: the Payback period for both projects. ii) the Net present value for the two projects. the Internal rate of return for project B only iv) Which project should be selected and state the reason. (3 marks) (6 marks) (3 marks) (2 marks)

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