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Hi i need help urgent Calculate the net present value for each project 2. ABC Sdn. Bhd. is in the process of choosing the better
Hi i need help urgent Calculate the net present value for each project
2. ABC Sdn. Bhd. is in the process of choosing the better of two equal risks, mutually exclusive capital expenditure project, A and B. The relevant cash flows for each project are shown in the following table. The firm's cost of capital is 12 percent. Project A (RM 25, 800) Project B (RM 27,000) Initial Investment Year (t) 1 2. After tax cash flows CF RM 10 000 RM 10 000 RM 10 000 RM 10 000 After tax cash flows CF RM 11 000 RM 10 000 RM 9 000 RM 8 000 3 4 a) Calculate each project's payback. Project A= RM25, 800 = RM10,000 =2.58 years Project B= 2[(RM 27,000 - RM 21,000) = RM 9,000] = 1.33 years b) Calculate the net present value NPV for each projectStep by Step Solution
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