QUESTION $1$:

Sihat Pharmacy Bhd$.$ is considering two mutually exclusive projects, Project Timor and Project Barat. The projected cash flows for both projects are shown in the table below. The projects are as risky as the usual projects the company undertakes. The company has a target debt$-$to$-$equity ratio of $0\mathrm{.}75,$ a cost of equity of $21\%,$ and an after$-$tax cost of debt of $4\mathrm{.}7\%.$

$\backslash$table$[[$Year Project Timor Project Barat$],[0,-RM40,000,-RM380,000$