Section B: Question 2 The Depp Corp. is considering the following projects to be undertaken by the company in 2023. The projects are mutually exclusive and only one project is to be chosen. The company's cost of capital is 6.32%. Project Zeus (PZ) The cost of the project is estimated to be RM800,000, with additional spending to purchase equipment of RM300,000. The equipment can be salvaged for 25% of the purchase price at the end of the project in 5 years. The operating cash flow (OCF) is as follows: The project cost is RM1.1 million, including the equipment cost of 20% of the project cost. The equipment is salvageable at the end of the tenure for 25% of the value. Additional 10% working capital is required based on project cost, which is also recoverable at the end of the project. 2 points Initial outlay of PZ is RM 3 points Total future value of PZ is RN 2 points The payback period for PZ is period. 1 point The net present value of PZ is RM The profitability index for PZ is 1 point The internal rate of return for PZ is \%. 31 point The modified internal rate of return for PZ is % 2 points The equivalent annual annuity (EAA) for PZ is RM 1 point The discounted payback period for PK is period. 343 points Total future value of PK is RM 35 2 points The equivalent annual annuity (EAA) for PK is RM Section B: Question 2 The Depp Corp. is considering the following projects to be undertaken by the company in 2023. The projects are mutually exclusive and only one project is to be chosen. The company's cost of capital is 6.32%. Project Zeus (PZ) The cost of the project is estimated to be RM800,000, with additional spending to purchase equipment of RM300,000. The equipment can be salvaged for 25% of the purchase price at the end of the project in 5 years. The operating cash flow (OCF) is as follows: The project cost is RM1.1 million, including the equipment cost of 20% of the project cost. The equipment is salvageable at the end of the tenure for 25% of the value. Additional 10% working capital is required based on project cost, which is also recoverable at the end of the project. 2 points Initial outlay of PZ is RM 3 points Total future value of PZ is RN 2 points The payback period for PZ is period. 1 point The net present value of PZ is RM The profitability index for PZ is 1 point The internal rate of return for PZ is \%. 31 point The modified internal rate of return for PZ is % 2 points The equivalent annual annuity (EAA) for PZ is RM 1 point The discounted payback period for PK is period. 343 points Total future value of PK is RM 35 2 points The equivalent annual annuity (EAA) for PK is RM