QUESTION 1

Sudin Sdn Bhd has the expected cash flow details for three projects as follows:

	Expected Cash Flow (RM)
Year	Project A	Project B	Project C
0	(18,000)	(24,000)	(36,400)
1	4,000	10,000	0
2	10,000	8,000	10,000
3	2,000	8,000	20,000
4	8,000	4,000	24,000

The company's required rate of return for the three projects is 12%

Required:

1. For each of the projects, calculate the following:
2. Payback period (6 marks)
3. Net present value (NPV) (6 marks)
4. Internal rate of return (IRR) (6 marks)

1. Based on the result above, which project(s) (under mutually exclusive) would you recommend? (2 marks)