IoI Capital is considering two investment projects, Battery Producer and Cake Producer. Project Battery Producer will cost RM400,000 whilst project Cake Producer costs RM12,000. The following cash-flows are predicted for each project:

Year	Battery Producer	Cake Producer
0	400000	12000
1	55000	30000
2	70000	25000
3	60000	30000
4	110000	40000
5	75000	62000

Required:

a) Calculate the Net Present Value (NPV) of the two projects using a discount rate of 9%. Based on the NPV criteria identify which projects you would accept and explain why.

b) Calculate the Internal Rate of Return (IRR) of each project. Using a hurdle rate equal to 8.2%, identify which projects you would accept and explain why.

c) Calculate the payback period for each project. If the company only accepts projects that pay back within 4 years, identify which projects you would accept and explain why.