Labu sdn bhd. is planning to make an investment of RM 500,000 in one of the two (2) alternative projects in Terengganu. The company's cost of capital is 15% and the expected cash flows from both projects are as follows:

year	project A (RM)	Project B (RM)
1	120,000	150,000
2	100,000	150,000
3	130,000	150,000
4	150,000	150,000
5	180,000	150,000

a) you are required to calculate:

i) payback period for both projects.

ii) next present value for both projects.

iii) internal rate of return for project B.

b) Based on your answer in (a) above, which project should be selected? Explain your answer.