Get genuine Urtice 213141516171811 9 10 111 112 113 114 115 1 Use the investment appraisal method of average rate of return to advise the owner on which project is a better investment. (6 marks) b) Another business owner has a choice of another 2 investment projects. The estimated costs and returns of the 2 projects are as follows: 12% 3% Project X (RM) Project Y (RM) DF DF Cost 180,000 150,000 1.0000 1.0000 Year 1 cash flow 60,000 50,000 0.8929 0.9709 Year 2 cash flow 40,000 -20,000 0.7972 0.9426 Year 3 cash flow 50,000 70,000 0.7118 0.9151 Year 4 cash flow 50,000 70,000 0.6355 0.8885 ii. Calculate the payback period for each of the project and then advise the owner on which project is a better investment. (6 marks) Using a discount factor of 12%, calculate the Net Present Value for each project and then advice the owner on which project is a better investment. (6 marks) Using the project as advised in part (ii), find the NPV of that project at 3% discount factor and then determine the IRR of that project. (7 marks) (Total: 25 marks) iii. estigate Bi EN -S F7 0 F6 OFIO F8 F9 F11 ( & % 5 6 v * 00 8 ) 0 9 R T Y U O F G H J K L K L 17