The CEO of Luxury Home Furniture Company has instructed you to assess two alternative capital expenditure proposals. The first proposal requires the company to completely rebuild its showroom in Iskandar Puteri, Johor. The second proposal calls for renovating the showroom. The projects are mutually exclusive. Table 1 below shows the cash flows associated with each project. The discount rate is 12%. Year Table 1: Projected cash flows Rebuild Renovate -RM9,288.999 -RM2,687,128 3,056,025 906.886 3,265,124 898,444 3,255,452 768.789 3,100,888 986.123 Required: 1) Calculate the payback period of each project. The maximum allowable payback period is 3 years. (4 marks) 2) Calculate the discounted payback period of each project. The maximum allowable discounted payback period is 3.5 years. (4 marks) 3) Calculate manually the net present value (NPV) of each project. (4 marks) 4) Calculate manually the internal rate of return (IRR) of each project. (4 marks) 5) 6) Calculate the profitability index (PI) of each project. (4 marks) Indicate your recommendation for each of the analysis in parts (1) to (5) above in a table format. (3 marks) Chart the NPV profiles of these projects. Label your chart accordingly. Calculate and indicate the crossover point in the chart. (12 marks) 7) 8) Based on this NPV profile analysis and assuming the WACC is 10%, which project would you recommended for acceptance? Why? (3 marks) 9) Based on this NPV profile analysis and assuming the WACC is 20%, which project is recommended? Why? (3 marks) 10) Assuming that a more conservative estimate shows that the rebuild project will record a cash flow of RM918.999 in year 2 whilst the renovate project will record -RM525, 145 in year 3. Using the combination approach, calculate the modified internal rate of return (MIRR) of each project. What is your recommendation? (5 marks) 11) Explain the important factors to consider when deciding between these two proposals. (4 marks) [Total 50 marks) General Requirements: 1) Show full workings