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i. Calculate the net present value for project A and B. ii. Calculate the payback period for project A and B iii. Calculate the profitability
i. Calculate the net present value for project A and B.ii. Calculate the payback period for project A and Biii. Calculate the profitability index for project A and B
Mewah Holding is a construction company in Johor. Mewah Holding has the following two projects at the same time. Mewah Holding need to choose only one project to proceed, based on the capacity, manpower and completion time. Below are the cash flow of the two projects. As a financial manager you need to advise Mewah Holding on which Project that will give positive financial impact to the firm. Assume the required return is 10%. Year 0 1 2 3 Project (A) - RM 40,000 RM19,000 RM20,000 RM18,000 Project (B) - RM 60,000 RM 14,000 RM25,000 RM30,000
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