ill. (6 marks) Calculate the coefficient of variation of return and interpret its result. (5 marks) (TOTAL: 25 MARKS) Question 2 a) Red Cherry Company is considering two capital investment proposals. Relevant data on each project are as follows: Project AA Project BB Capital investment RM200,000 RM280,000 Annual net income 15,000 25,000 Estimated useful life 8 years 8 years Depreciation is computed by the straight-line method with no salvage value. Red Cherry Company requires an 8% rate of return on all new investments. 3RD MARCH 2029 Required: 8+ i. Compute the cash payback period for each project. (4 marks) ii. Compute the net present value for each project. a slf (6 marks) iii. Compute the annual rate of return for each project. (5 marks iv. Which project should Red Cherry Company select? (2 marks b) A firm purchased goods with a purchase price of RM12.500 and credit terms of 1/ 1.AL