IpohBhd. has RM35,000 to invest. The company is trying to decide between twoalternatives uses for the funds as follows;

Project A

(RM)

Project B

(RM)

Annual cash inflow

9,000

Single cash inflow at the end of 10 years

150,000

Life of the project

Life of the project

10 years

10 years

Required;

i.Calculate theNPV for both project X & Y (you can use the internet to look for the appropriate Tables)

(10 Marks)

ii.What is the payback period for both projects?

(5 Marks)

iii.Which project would you choose? Why?