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There are two hotel projects; Datai Resort and Lembah Resort. Datai Resort project assume a net cash flow of RM30,000; RM25,000; RM40,000; RM70,000 and RM50,000

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There are two hotel projects; Datai Resort and Lembah Resort. Datai Resort project assume a net cash flow of RM30,000; RM25,000; RM40,000; RM70,000 and RM50,000 in the next five years for their annual project. It will cost RM100,000 to implement the project. But the Lembah Resort project assume their income for the annual project is RM20,000; RM55.000; RM20,000: RM76,000 and RM50,000 and the cost is same with Datai Resort. Analyse the following financial method if the required rate of return is 5%. (a) Net Present Value (NPV) for each project. (14 marks) (b) Payback Period for each project. (5 marks) (c) Return on Investments (ROI) for each project, (6 marks)

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