QUESTION 4 a) Success Sdn Bhd is considering one of the two mutually exclusive projects, GAMUDA...
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QUESTION 4 a) Success Sdn Bhd is considering one of the two mutually exclusive projects, GAMUDA and SIME. The company's discount rate is at 10 percent. The expected after tax cash flows for both projects are as follows: Year 0 1 2 3 4 5 GAMUDA (RM) (20,000) 2,500 3,000 4,500 5,000 6,000 SIME (RM) (24,000) 8,000 8,000 8,000 8,000 8,000 As the company's financial manager, you are required to: i) Calculate the payback back period for project GAMUDA and SIME. ii) Calculate the Net Present Value for project GAMUDA and SIME. iii) Calculate the Internal rate of return for p project GAMUDA and SIME. (4 marks) (6 marks) (6 marks) iv) Determine the best project that Success Sdn Bhd should invest into. Justify your answer. (4 marks) (Total 20 marks) QUESTION 4 a) Success Sdn Bhd is considering one of the two mutually exclusive projects, GAMUDA and SIME. The company's discount rate is at 10 percent. The expected after tax cash flows for both projects are as follows: Year 0 1 2 3 4 5 GAMUDA (RM) (20,000) 2,500 3,000 4,500 5,000 6,000 SIME (RM) (24,000) 8,000 8,000 8,000 8,000 8,000 As the company's financial manager, you are required to: i) Calculate the payback back period for project GAMUDA and SIME. ii) Calculate the Net Present Value for project GAMUDA and SIME. iii) Calculate the Internal rate of return for p project GAMUDA and SIME. (4 marks) (6 marks) (6 marks) iv) Determine the best project that Success Sdn Bhd should invest into. Justify your answer. (4 marks) (Total 20 marks)
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Question 4 a i Pay back period for project GAM U DA 20 000 2 500 8 years Pay bac... View the full answer
Related Book For
Financial Management Theory and Practice
ISBN: 978-1305632295
15th edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
Posted Date:
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