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Question 5 Diana who works with TwentyCent Enterprise as a project manager was given a task to review two different mega project. This project will
Question 5 Diana who works with TwentyCent Enterprise as a project manager was given a task to review two different mega project. This project will be the next stepping stone of the company to penetrate into a new market. The 15 project is called Project Bread & Butter which cost a total of RM8,000 and will state a projected cash flow of RM5,800 per year for the next 5 years. The 2nd project that Diana need to review is called Project Cupcake which has the same cost and generates a cash flows of RM4,500 in year 1, RM2,800 in year 2, RM500 in year 3, RM4,400 in year 4 and RM6,800 in the final year. The cost of capital for both projects are the same which is 15 percent. By calculating the net present value (NPV), which project should Diana choose for her company to invest. (Total Marks: 13.5 marks)
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