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DOES ANYONE CAN HELP ME TO ANSWER THE QUESTIONS ? PLEASE HELP NEEDED URGENT (b) Rosethorn Enterprise is considering whether to invest in the following

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DOES ANYONE CAN HELP ME TO ANSWER THE QUESTIONS ? PLEASE HELP NEEDED URGENT

(b) Rosethorn Enterprise is considering whether to invest in the following projects: Year 0 1 2 3 4 5 6 Expected Cash Flow (RM) Project P Project Q (75,000 (90,000) 10,000 15,000 10,000 15,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 The company requires a minimum 10% rate of return. (i) Compute the profitability index (PI) for both projects. (12 marks) (ii) Based on your results in Part (i), advice Rosethorn Enterprise on which project is acceptable for investment if the enterprise has no budget constraint (2 marks) List down THREE (3) limitations of internal rate of return (IRR) as a capital budgeting tool. (3 marks) (iii)

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