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Question 1 Syarikat Embun Berhad ( SEB ) is considering the following projects: table [ [ , Ringgit Malaysia ] , [ Project ,
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Syarikat Embun Berhad SEB is considering the following projects:
tableRinggit MalaysiaProjectInitial outlay,Net cash inflows for year:TimurBaratUtara
From the information given, you are required to answer the following questions.
a Calculate the Payback Period for each project. Show the formula and your workings. Marks
b Calculate the Net Present Value for each project assuming a discount rate. Show the formula and your workings.
Marks
c Given the information that SEB imposes a year acceptable payback period, and these projects are independent, what decision should be made? Explain your answer.
Marks
d Given the information that SEB imposes a year acceptable payback period, and the projects are mutually exclusive, what decision should be made? Explain your answer.
Marks
Total: Marks
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