Required: a) Appraise the projects using the Accounting Rate of Return. 5 marks b) Appraise the projects using the Payback Period. 5 marks c) Appraise the projects using the Net Present Value. 10 marks d) If the projects are mutually exclusive, which project should Prestigious Sdn Bhd invest in? Explain your recommendation with reference to the above appraisal methods. 15 marks Note: State all relevant formulas in your appraisal.

Prominent Sdn Bhd invested in two projects, project Alpha and project Beta. The projects are independent of each other. The following schedule shows the cash flows for each project. The following schedule shows the profit for each project. The discount rate is 10%