(Khaleef is appointed as a financial analyst for the NASHORA Bhd. The director has asked him to analyse two proposed capital investments, Project NAS dan Project HORA. Each project has a cost of RM2,000,000. NASHORA Bhd will used a mix of capital structure (40% of debt and 60% of equity) to finance their projects cost. NASHORA will issuing a-10years bond with 10% coupon rate and selling price at RM750. Tax rate = 30%. Meanwhile, a 4%-risk free rate, risk premium of 3% and 2.0 for company beta. The projects expected net cash flows are as follows:) Tahun Aliran Tunai Bersih Dijangka Expected Net Cash Flows Year Project NAS Project HORA 0 -RM24,890,000 -RM13,500,000 1 12,950,000 7,230,000 2 10,923,000 8,100,000 3 8,231,000 8,629,000 4 7,242,000 5,238,900

(Management requires a minimum return of 15% in order for the project to be acceptable. The discount rate for projects of this level of risk is 10%. Management 3 requires projects with this type of risk to have a minimum payback of 1.5 years. Assuming the projects are mutually exclusive and ignoring the issue of scale, what should NASHORA Bhd do? Include calculations for the payback method, t net present value and internal rate of return in your analysis. Which project should the company consider, if any?) (i) Kira Kos modal NASHORA (Calculate NASHORAs cost of capital). (5 markah/marks) (ii) Kira tempoh bayar balik untuk setiap projek. (Calculate each projects payback period.) (5 markah/marks) (iii) Kira Nilai Kini Bersih untuk setiap projek (Calculate net present value for each project.) (5 markah/marks) (iv) Kira kadar pulangan dalaman (IRR). (Calculate internal rate of return (IRR) for each project. ) (5 markah/ marks) (v) Projek mana akan dipilih? Mengapa? (Which project be selected?