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Oracle Sdn Bhd is considering one of the two mutually exclusive projects, GAMUDA and KULIM. The company's discount rate is at 6%. The expected after-tax
Oracle Sdn Bhd is considering one of the two mutually exclusive projects, GAMUDA and KULIM. The company's discount rate is at 6%. The expected after-tax cash flows for both projects are as follows:Year GAMUDA(RM) KULIM(RM)0 (30,000) (30,000)1 12,500 9,5002 8,000 9,5003 10,500 9,5004 9,000 9,5005 8,000 9,500 As the company's financial manager, you are required to:i) Calculate the payback back period for project GAMUDA and KULIM.ii) Calculate the Net Present Value for project GAMUDA and KULIM.iii) Calculate the Internal rate of return for p project GAMUDA and KULIM. (4 marks)(3 marks)(4 marks) iv) Determine the best project that Oracle Sdn Bhd should invest into. Justify your answer.(4 marks)
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Step: 1
Given the data above lets calculate the required financial metrics for Oracle Sdn Bhds potential projects GAMUDA and KULIM i Payback Period Calculatio...Get Instant Access to Expert-Tailored Solutions
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Step: 2
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