Orked Zara Sdn Bhd is evaluating the data for two projects as follows:

	Project A (RM)	Project B (RM)
Initial Investment	21,000	22,500
Year	Operating Cash Inflow
1	7,000	14,000
2	7,000	6,000
3	7,000	5,000
4	7,000	5,000
5	7,000	5,000

For each project, calculate the following capital budgeting techniques:

1. Accounting Rate of Return (Assume salvage value = 0)

(4 marks)

2. Payback Period

(2 marks)

3. Net Present Value (Use cost of capital = 10 percent)

(10 marks)

4. Profitability Index (Use the same cost of capital in (c) above)

(4 marks)