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Q1. Two mutually exclusive projects have projected cash flow as follows. Year 0 1 2 3 4 Project A -RM200,000 RM90,000 RM90,000 RM90,000 RM90,000 Project
Q1. Two mutually exclusive projects have projected cash flow as follows. Year 0 1 2 3 4 Project A -RM200,000 RM90,000 RM90,000 RM90,000 RM90,000 Project B -RM140,000 RM60,000 RM60,000 RM60,000 RM60,000 If the required rate of return is 12%, determine the net present value, NPV, for each project. Which project should be selected? Why? (7 marks) (CLO3:PLO6:C4)
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