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i hope you can show me how to calculate Question 2 Si Kaya Berhad is selecting three independent projects. The initial investment and after-tax cash
i hope you can show me how to calculate
Question 2 Si Kaya Berhad is selecting three independent projects. The initial investment and after-tax cash inflows associated with each project are shown in the following table: Cash flows Initial investment Cash inflows, years 1-5 Project Selar RM 90,000 RM 30,000 Project Selayang RM 100,000 RM 31,500 Project Siakap RM 110,000 RM 32,500 From the above information you are required to answer the below questions. a. Calculate the payback period for each project, Si Kaya Berhad has required payback period less than 5 years. (3 Marks) b. Calculate the net present value of each project, Si Kaya Berhad has a required rate of return of 15%. (3 Marks) C. Indicate which project/s you would recommend based on your calculation in part (a) and (b). Explain your answer. (4 Marks) (Total: 10 Marks)Step by Step Solution
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