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Please provide answer according to the question and mark with 2 hours QUESTION 2 JKR Corporation is considering the following projects for their future investments.

Please provide answer according to the question and mark with 2 hours

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QUESTION 2 JKR Corporation is considering the following projects for their future investments. The table shows the future cash flow of the projects. Both the project requires an initial investment of RM200,000. Year 0 1 Project A 200,000 89,000 80,000 75,000 70,000 69,000 Project B 200,000 75,000 70,500 69,500 61,900 2 3 4 5 55,000 Required: a) Calculate the following for Project A and Project B given the discount rate is 15% i. Net present value (6 marks) ii. Payback period (6 marks) iii. Profitability ratio (6 marks) b) If the two projects are not mutually exclusive investment, which project JKR Corporation should invest based on the above calculations. (6 marks) c) Discuss the advantage of applying net present value measurement before choosing an investment. (6 marks)

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