Question 3 Maximus Company's Finance Manager is considering two projects, namely Projek Gagah and Project Bakti, to make new investments for the company. The cost of capital of a company is 10 percent. The return on capital period is expected to be 3 years. The net operating cash flows of the project are as follows: Year Project Gagah Project Bakti (RM) (RM) (800,000) (800,000) 1 300,000 350,000 2 350,000 350,000 360,000 340,000 340,000 340,000 5 370,000 330,000 Calculate for both projects: (a) Payback period. 5 marks (10 marks) (b) Net present value. (10 marks) (c) Which project should Maximus Company choose? give your reason. 3 4