Question: 1 Debunga Berhad is trying to invest in three mutually exclusive flower design projects. All projects have an initial cash outflow of RM5,000. Given below

1 Debunga Berhad is trying to invest in three mutually exclusive flower design projects. All projects have an initial cash outflow of RM5,000. Given below are the cash inflows for each project: RM'000 Year Project Anggerik Project Mawar Project Teratai 1 3,000 1,000 3,000 2 3,000 3,000 4,000 3 3,000 5,000 2,000 From the information given, you are required to answer the following questions: a. If the company applies the Payback Period decision rule, which project should Debunga Berhad choose? (8 Marks) b. If the required rate of return is 12% and the company applies the Net Present Value decision rule, which project should Debunga Berhad choose? (8 Marks) c. If the company applies the Profitability Index decision rule, which project should Debunga Berhad choose? (8 Marks) d. Based on your answers in part (a) to (c), which project should Debunga Berhad finally choose to invest? Explain your answer. (6 Marks)

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