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QUESTION 1 (20 MARKS) Suka-Suka company is looking to invest in one of the new machine and the cost of the machine is RM
QUESTION 1 (20 MARKS) Suka-Suka company is looking to invest in one of the new machine and the cost of the machine is RM 65,000 including installation cost. By investing in this project, Suka- Suka Limited Company expected to receive net income as below: Year Net Income 1 RM 18,000 2 RM 22,000 3 RM 25,000 4 RM 30,000 5 RM 35,000 Required: a) Calculate Net Present Value from that operating cash flow. b) Calculate the Payback period. (8 marks) (4 marks) Calculate discounted payback period. (5 marks) d) As a corporate finance manager, do you still want to proceed with this investment? Why? (3 marks)
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