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(Project 1: Computer repairing company that requires an initial investment of RM200 mil to yield estimated annual cash flows of:) (The appropriate discount rate for
(Project 1: Computer repairing company that requires an initial investment of RM200 mil to yield estimated annual cash flows of:) (The appropriate discount rate for this project is 4%.) (RM 70 mil in Year 1) (RM 50 mil in Year 2) (RM 45 mil in Year 3) (RM 40 mil in Year 4) (RM 30 mil in Year 5) (RM 20 mil in Year 6) (RM 10 mil in Year 7) (RM 10 mil in Year 8) (RM 5 mil in Year 9) (RM 5 mil in Year 10) (Project 2: Phone repairing and accessory company that requires an initial investment of RM 75mil to yield estimated annual cash flows of:) (RM 25 mil in Year 1) (RM 22.5 mil in Year 2) (RM 17.5 mil in Year 3) (RM 17.5 mil in Year 4) (RM 15 mil in Year 5) (RM 12.5 mil in Year 6) (RM 10 mil in Year 7) (RM 5 mil in Year 8) (The appropriate discount rate for this project is 7%.) (Azrul is only able to undertake one project. Using the profitability index method, which project should Azrul undertake?) 15 mark
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