Due to fund limitation, Bega Muilders Sdn Bhd is considering building a new bungalow house for one of their two clients. Their options are whether to build Rumah Alpha or Rumah Beta. Both projects cost RM700,000 each and identical useful lives. However, these projects will generate different cash flows. The cost of capital is 10% per annum. The cash flow for each project is shown below: Year Rumah Alpha Rumah Beta 1 100,000 100,000 2 300,000 400,000 3 400,000 500,000 4 300,000 200,000 5 100,000 Nil Calculate:

(a) The payback period for each project.

(b) The net present value for both projects.

(c) The internal rate of return for both projects.

(d) Advise Bega Muilders Sdn Bhd as to which project is more financially worthwhile, and reasons for your answer.