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Project Year Investment (RM) Revenue Stream (RM) Dust Devils 500.000 Ospry ONOTO 250,000 1 3 50.000 250,000 350,000 0 75,000 75,000 75.000 50,000 0 15,000

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Project Year Investment (RM) Revenue Stream (RM) Dust Devils 500.000 Ospry ONOTO 250,000 1 3 50.000 250,000 350,000 0 75,000 75,000 75.000 50,000 0 15,000 25,000 50,000 50,000 150,000 Voyagers 75,000 Evaluate the above proposals and lay out your team priority based on return on investment for fund approval. (13 marks) B. For most managers, financial criteria are the preferred method to evaluate project. You are supplied the following data for evaluation. These data are proposed by AYG Pte. Ltd. for two new projects namely AGO and BGO. The AGO project will cost $150,000 initial investment to develop and projected to have annual net cash flow of $40,000 for 4 years. The BGO project will cost $200,000 to develop and is expected to have annual net cash flow of $50,000 for 5 years. Assume that both projects aim at the minimum desired rate-of-retur (discount rate) of 20% Evaluate these projects and make statement of recommendation for financial approval. (12 marks)

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