Question: 1. Calculating Net Present Value: (a) Calculate the present value of RM 2,500,000 (future value) received from Power Plant Project in five years (i.e., 2026)

1. Calculating Net Present Value:

(a) Calculate the present value of RM 2,500,000 (future value) received from Power Plant Project in five years (i.e., 2026) from today (i.e., 2021) when the interest rate is 6% per year? Provide the percentage of interest and percentage of principal (i.e., from RM 2,500,000).

(10 marks)

Note: You will need to show your calculations to earn full marks.

(b) Average price of land per square feet in Kuala Lumpur (KL):

Year Price

2016 447.77

2017 529.19

2018 592.11

2019 622.90

2020 776.09

2021 812.02

Calculate the compound annual growth rate (CAGR) of land price, per square feet in KL (round it up to two decimal place).

(10 marks)

Note: You will need to show your calculations to earn full marks.

(c) Based on the CAGR of land price (per square feet in KL), if you invest the principal money you obtained from Q1(a), how much would you receive in 5 years. Would you invest Power Plant Project or Land in Kuala Lumpur?

(10 marks)

Note: You will need to show your calculations to earn full marks.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

1. Calculating Net Present Value: (a) Calculate the present value of RM 3,500,000 (future value) received from Property Development Project in six years (i.e., 2028) from today (i.e., 2022) when the...

1. Calculating Net Present Value: (a) Calculate the present value of RM 5,500,000, i.e., future value, received from Pronto Research Project in four years (i.e., 2026) from today (i.e., 2022) when...

opple-conve. Emphasis Heading 2 Heading 3 Sty Pai Individual Written Assignment 1 1. Calculating Net Present Value (a) Calculate the present value of RM 1,000,000 (this future value) received from...

AutoSave OFF H 5 + 5 = wa Douglas Case rev 9_7_21(2) (1) Home Insert Draw Design Layout References Mailings Review View Tell me Share Q Comments X LO Calibri (Bo... V 11 21 AaBbcDdEe AaBbCcDdEe AaBb...

After you read all of the comments above which is my attempt to interpret the dollar amounts associated with Indicated value with voting rights expressed as a dollar amount, Discount for Lack of...

Complete tabs 6.1, 6.4, 6.7, 6.9, 6.12, 6.16, 6.23, and 6.33 in the attached Chapter 6 Excel spreadsheet. An EXAMPLE tab is provided in the spreadsheet for your guidance. You must use formulas in the...

1. 22. What factors affect the degree of firm's translation exposure? 1. 23. Consider a period in which the U.S dollar weakens against the euro. How will this affect sspthe reported earnings of (1...

A machine costs $10,000, has a three-year life, and has an estimated salvage value of $1000. It will generate after-tax annual cash flow (ACF) of $6000 a year, starting nex year. If your required...

The height h in feet of a model rocket above the ground t seconds after lift-off is given by h(t) = -5t 2 + 100t, for 0 st 20. When does the rocket reach its maximum height above the ground? What is...

Using the matrix data above (Forbes 500), select a pair of variables and run a simple regression. Then investigate the appropriateness of the model for the data using diagnostic tools for evaluating...

SlickCo, a 2 0 X 1 start - up that uses the periodic method and weighted - averagecosting, makes the following merchandise purchases: 2 0 X 1 Units Unit costMarch 4 5 0 $ 3 . 0 0 August 6 5 0 $ 3 . 5...

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".