Question $2(10$ marks$)$

You are a financial analyst for M & M Electronic Company. The director of capital budgeting has

asked you to analyze two proposed capital investments, Project A and Project B$.$ Each project has

a cost of RM$100,000$ and the required rate of return for each project is $16$ percent. The projects'

expected net cash flows are as follows:

$($a$)$ Calculate each project's payback period, net present value and internal rate of return.

$(6$ marks$)$

$($b$)$ Which project or projects should be accepted if they are:

$(2$ marks$)$

i$)$ Independent

ii$)$ Mutually exclusive

$($c$)$ Differentiate between mutually exclusive and independent projects.