Question 2 a) Sang Bulan Sdn. Bhd. utilizes the payback method to evaluate the following investment proposals. ZS 2/9 BFN1024 PRINCIPLES OF FINANCE 3RD MARCH 2021 Year 1 2 3 4 5 Cash inflows (RM) Project A Project B Initial Outlay = RM100,000 Initial Outlay = RM500,000 25,000 125,000 25,000 120,000 25,000 200,000 25,000 250,000 25,000 100,000 i. Compute the payback period for both projects. (4 marks) ii. Suppose these two projects are mutually exclusive. Which project(s) should Sang Bulan accept? (2 marks) iii. List and explain TWO limitations of payback method. Page 3 / 9 (3 marks) +