(KiDiKef Cereal Company is considering adding two new kinds of cereal to its product line-one geared toward children and the other toward adults. The company is currently at full capacity and will have to invest a large sum in machinery and production space. However, given the nature of cereal production, the investment in machinery will be more costly for the childrens cereal (KiDi ) than for the adult cereal (DiKef ). The expected cash flows for the two cereal are:)

TAHUN/YEAR	KiDi (RM)	DiKef (RM)
0	-24,890,000	-13,500,000
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 requires projects with this type of risk to have a minimum payback of 1.5 years. This project is Mutually exclusive project.

Determine

1.(Payback Period)

2. (Net Present Value)

3. (Internal Rate of Return)

4. (Which project will be selected and Why?)