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Question 2 a) A firm is considering the following mutually exclusive investment projects. Project Matahari requires an initial outlay of RM500,000 and will provide cash

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Question 2 a) A firm is considering the following mutually exclusive investment projects. Project Matahari requires an initial outlay of RM500,000 and will provide cash inflow of RM120,000 per year Project Bulan requires an initial outlay of RM54, 000, tee and will provide cash inflow of RM12, 700 in year 1, RM23,200 in year 2, RM27,600 in year 3 and RM46,500 in year 4. The cost of capital is 14%. i. Calculate the NPV of both projects, which project should it take? (5 marks) ii. Calculate the profitability index (PI) of both projects, which project should the firm accepts

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