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QUESTION 4 Kepayan Indah Sdn Bhd is considering two independent projects. Both projects require an initial investment of RM 700,000 . The cost of capital

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QUESTION 4 Kepayan Indah Sdn Bhd is considering two independent projects. Both projects require an initial investment of RM 700,000 . The cost of capital is 10%. The expected cash flows for each project are aiven as follows: a) Calculate the following: i) Payback period for both projects. (4 marks) ii) Net present value for both projects. (6 marks) iii) Internal rate of return for project B only and do interpolation. (4 marks) iv) Profitability Index for Project A. (2 marks) b) Which project should Kepayan Indah Sdn Bhd choose? Justify your answer. (2 marks)

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