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Economics ( b ) Consider Capital Budgeting Project A and B which yields the following cash flows over their five year lives as shown in
Economics ( b ) Consider Capital Budgeting Project A and B which yields the following cash flows over their five year lives as shown in Table Q3(b): Table Q3(b) Year Project A Project B Cash Flow (RM) 0 -1,000 -1,000 500 100 400 200 AND 200 200 200 400 100 700 (i) Interpret which project has the lowest payback period with relevant justifications. (2 marks) (ii) Compute Net Present Value (NPV) for each of the projects shown. Assume, i=10%. (S marks) (iii) Based on NPV, interpret either one or both projects can be selected with justifications. (2 marks) (iv) Present One (1) advantage and One (1) disadvantage of NPV method. (2 marks) asap plz
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