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 the interest rate is 5% per year? Provide the percentage of interest and percentage of principal, i.e., from RM 5,500,000.

(10 marks)

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

(b) Average sales revenue for Transcendent Technology Inc.:

Year Ringgit Malaysia

2017 1,300,876

2018 2,500,345

2019 3,403,986

2020 5,309,842

2021 6,256,743

2022 8,549,783

Calculate the compound annual growth rate (CAGR) of sales revenue for Transcendent Technology Inc. (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 Transcendent Technology Inc.s average sales revenue, if you invest the principal money you obtained from Q1(a), how much would you receive in 10 years. Would you invest Pronto Research Project or Transcendent Technology Inc.?

(10 marks)

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