Question 1: a. A firm is considering the following two mutually exclusive investments in two different locations: Cash Flows ($) Projects C0 C1 C2 C3 Thailand 25,000 + 15,000 + 15,000 + 25,640 Vietnam 28,000 + 12,672 + 12,672 + 12,672 The cost of capital is 12 per cent. Compute the NPV, Profitability Index & Payback period for each project. Which project should be undertaken? Why?

b. Discuss the impacts of capital budgeting techniques on financial performance of a business.

Question 1: a. A firm is considering the following two mutually exclusive investments in two different locations: Cash Flows (S) Projects Co - C1 C2 C3 Thailand - 25,000 + 5,000 + 5,000 + 25,640 Vietnam - 28,000 + 12,672 + 12,672 + 12.672 The cost of capital is 12 per cent. Compute the NPV, Profitability Index & Payback period for each project. Which project should be undertaken? Why? b. Discuss the impacts of capital budgeting techniques on financial performance of a business