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Mawar Putih Bhd. is considering three mutually exclusive proposals with the cost of capital of 10%. The proposal cash flows are summarized as follows: Initial
Mawar Putih Bhd. is considering three mutually exclusive proposals with the cost of capital of 10%. The proposal cash flows are summarized as follows: Initial Investment Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Proposal W (RM) 25,000 9,742 9,742 9,742 0 0 0 0 0 0 Proposal Q (RM) 23,000 4,641 4,641 4,641 4,641 4,641 4,641 4,641 4,641 4,641 Proposal V (RM) 20,000 8,000 8,000 8,000 8,000 0 0 0 0 a) You are required to calculate and choose the proposal that Mawar Putih should proceed by using: Payback Period technique Net Present Value technique Internal Rate of Return technique
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