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Question 4 Sylvon Sdn Bhd is considering which of two mutually exclusive projects it should undertake. Details of the projects' cash flows are given below

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Question 4 Sylvon Sdn Bhd is considering which of two mutually exclusive projects it should undertake. Details of the projects' cash flows are given below Year Project A (RM) 0 (20.000) 1 4,600 2 6,200 3 8,000 4 10,600 The company's cost of capital is 12%. Project B (RM) (20,000) 11,200 8,600 6,600 0 Required: a. Calculate the projects on the basis of. i. Payback period (4 marks) ii. Net present value (6 marks) 111. Intemal rate of retum (10 marks) b. Dicuss the advantages and disadvantages of using payback period (5 marks) (Total: 25 marks)

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