Sime Darby Berhad is the largest conglomerate in Malaysia and one of the largest in southeast Asia. Within its orbit are more than 270 operating companies in 23 countries, with its most extensive foreign operations in Hong Kong (which accounts for 25 percent of revenues), Singapore (14 percent), and Australia (11 percent). (The company generates 38 percent of its revenues domestically.) Its broadly diversified activities include a wide range of industries, with the core businesses being plantations (including oil palm and the company's original business, rubber), tire manufacturing, heavy equipment and motor vehicle distribution, property development, power generation, and engineering services. Other business operations include paint manufacturing, refrigeration product manufacturing, travel and tourism services, hospitals, and golf courses. In 1980, Sime Darby Berhada was listed in Kuala Lumpur Stock Exchange (now known as Bursa Malaysia). Plans to merge Sime Darby, Guthrie, and Golden Hope was announced in 2006. In 2007, the newly joined Sime Darby, Guthrie, and Golden Hope re-entered the Kuala Lumpur Stock Exchange under the name of Sime Darby with a market capitalisation of RM59.5 billion – nearly 80% more than its original RM31.6 billion at the start of the merger process. In 2013, Sime Darby Berhad and Ramsay Health Care Limited entered into a joint venture to expand their healthcare businesses. The new company (Ramsay Sime Darby Health Care) is equally owned by Ramsay and Sime Darby. In 2017, transformation of Sime Darby Berhad from a conglomerate to three independent entities: Sime Darby Plantation Berhad, Sime Darby Property Berhad, and Sime Darby Berhad (consisting of Industrial, Motors, Logistics, Healthcare, and other businesses). After graduation, you have successful join this company and been placed in Finance Department as an Analyst Associate. As an MBA graduate, the management has trust that you have an excellent knowledge and skills besides the capability you have shown during the interview. Mr Joseph, a Chief Finance Officer (CFO) have asking the Finance Department to prepare a few tasks for him to present for the company business planning for five years. You are one of the staff in the department has involve in these tasks. Mr Andrew Yap, the Finance Manager has segregated the tasks to few people in the department. The tasks have been given by Mr Andrew for you to accomplished as follows:

a) Sime Darby’s has issued few bonds to raise funds for its projects. Choose any TWO (2) Sime Darby’s bonds to evaluate these bonds according to the bond valuation.

b Arrow’s is considering few new projects in Selangor and Kuala Lumpur. Therefore, you have to evaluate all these projects according to:

i.Payback period -an independent project. Required to recover the initial outlay in 3 years.

ii. Discounted payback period – a mutually exclusive project. Required to recover the initial outlay in 3 years.

iii. Net Present Value (NPV) – a mutually exclusive project.

iv. Internal Rate of Return (IRR) – an independent project.

v) Profitability Index – a mutually exclusive project.