Papa Kedana Berhad is considering the following two projects:

Project	Initial outlay	Net cash flows for year:
		1	2	3	4
Sakit Hati	RM4,000,000	RM2,003,000	RM2,003,000	RM2,003,000	RM2,003,000
Suka Hati	RM4,000,000				RM11,000,000

From the information given, you are required to answer the following questions:

1. Calculate the Net Present Value for each project assuming a 14% discount rate. (4 Marks)
2. Calculate the Payback Period for each project. (3 Marks)
3. If 14% is the required rate of return, and Papa Kedana Berhad imposes a 5-year acceptable payback period, and these projects are independent, what decision should be made? Explain your answer. (4 Marks)
4. If 14% is the required rate of return, and Papa Kedana Berhad imposes a 5-year acceptable payback period, and the projects are mutually exclusive, what decision should be made? Explain your answer. (4 Marks)

(Total: 15 Marks)