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YOU N CES REVEW VIEW A MAILINGS C sa E 2 . . Abba Aber das T No Spa Heading 7 Subtle Em.. A. .A.

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YOU N CES REVEW VIEW A MAILINGS C sa E 2 . . Abba Aber das T No Spa Heading 7 Subtle Em.. A. .A. . alica Emphasa Intense Paragraph [Total 7 Jumlah: 15 Marks/ 15 Markah QUESTION 21 SOALAN 2 A company evaluating 3 projects as shown in Table 2. Initially, the company invests RM28.542 million for each project, i.e. Project A. Project B and Project C. During the first year, Project A generates RM3 million: Project B generates RM21 million and Project generates RM13.5 million. Subsequently, the revenues for following years are as shown in Table 2 Determine the ranking of these three projects on the basis of the evaluation criteria of Net Present Value (NPV), Payback and Profitability Index (PI). The firm's cost of capital i = 10% (15 marks) Table 27 Jadual 2 Year / Tahun Project AT Projek A Project BI Prowk Project Prok (RMX 1,000,000) (RMX 1,000,000) (RMX 1,000,000) -28.542 -28.542 -28.542 13.5 15 13.5

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