Hassan is analyzing a project and has prepared the following data:

Year		Cash flow
0	-RM 169,000
1	RM		46,200
2	RM		87,300
3	RM		41,000
4	RM		39,000

Required payback period 2.5 years

Required return 8.50%

1. Compute the Net Present Value (NPV) for the project.

(7 marks)

ii. Should Hassan accept the project based on the NPV criteria?

(3 marks)

iii. Compute the payback period for the project.

(7 marks)

iv. Based on payback, should Hassan accept the project?

(3 marks)