Question 1: Venus Hotel Hotel Royale has four potential projects, Project A, Project B, Project C and Project D. Each project requires an initial investment of RM200 million. The forecasted cash flows and relevant information of the four projects are given below. Year Project D 1 2 3 4 5 Project A 55 SS 55 55 55 Cash Inflow (forecasted) (RM' million) Project Project C B 75 45 60 55 50 65 45 75 30 85 60 55 70 80 30 The discount factor for each of the projects is as follows: Project A 6% Project B 8% Project 10% Project D 12% Required: a) Compute the net present value of all four projects. (8 marks) b) Identify the projects that will be selected, if the hotel has a financial constraint of only having RM400 million for capital expenditure. (4 marks) Compute the IRR (internal rate of return) for all projects. (8 marks) Total (20 marks)