Question 1 (a) What is the Net Present Value (NPV) of each investment? Which investment (if either) should the company undertake ? Discount Rate = 10% Present Value YEAR LED Project Solar Project (RM ) (RM) LED Project (RM ) Solar Project (RM ) 0 (4,200,000 ) 500,000 ) (4,200,000.00 (500,000.00 700,000 0,000 36,363.64 $4,545.45 IN 00,000 60,000 578,512.40 49,586.78 700,000 60,000 525,920.36 45,078.89 700,000 50,000 478,109.42 10,980.81 1,000,000 60,000 620,921.32 37,255.28 6 700,000 60,000 395,131.75 33,868.44 7 700,00 60,000 359,210.68 30,789.49 700,000 60,000 326,555.17 27,990.44 700,000 50,000 296,868.33 25,445.86 10 700,000 60,000 269,880.30 23,132.60 Net Present Value (NPV) 700,000 700,000 700,000 700,000 LED Project (1 +0.10)1 (1 + 0.10)2 (1 +0.10 ) (1 +0.10 )4 1,000,000 (1+0.10 )5 + 700,000 700,000 700,000 700,000 (1 +0.10)6 + (1 + 0.10 ) + (1 +0.10)8 + (1 + 0.10 )9 + 700,000 (1+ 0.10 ) 10 4,200,000 = RM 287,473.37 CF 1 Solar Project = (1 +i ) ] CF