Pantone Bhd invested in two projects, project Gamma and project Kappa. The projects are independent of each other. The following schedule shows the cash flows for each project.

The following schedule shows the profit for each project.

The discount rate is 10%.

Required:

A. Appraise the projects using the Accounting Rate of Return.

B. Appraise the projects using the Payback Period.

C. Appraise the projects using the Net Present Value.

D. If the projects are mutually exclusive, which project should Prominent Sdn Bhd invest in? Explain your recommendation with reference to the above appraisal methods.

E. If the projects are independent, which project should Prominent Sdn Bhd invest in? Explain your recommendation with reference to the above appraisal methods.

Need all relevant formulas for understanding purpose.

\begin{tabular}{|l|l|l|} \hline Year & Project Gamma & Project Kappa \\ \hline 0 & - RM 60,000 & - RM 60,000 \\ \hline 1 & RM 25,000 & RM 10,000 \\ \hline 2 & RM 20,000 & RM 20,000 \\ \hline 3 & RM 15,000 & RM 20,000 \\ \hline 4 & RM 10,000 & RM 25,000 \\ \hline 5 & RM 10,000 & RM 5,000 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline Year & Project Gamma & Project Kappa \\ \hline 0 & RM 0 & RM 0 \\ \hline 1 & RM 12,000 & RM 5,000 \\ \hline 2 & RM 12,000 & RM 10,000 \\ \hline 3 & RM 12,000 & RM 10,000 \\ \hline 4 & RM 12,000 & RM 15,000 \\ \hline 5 & RM 12,000 & RM 20,000 \\ \hline \end{tabular}