Question: (12 marks) Q2 Cost for Project A and Project B is RM500,000 respectively to implement the project and the rate of return is 10%. A

(12 marks) Q2 Cost for Project A and Project B is

(12 marks) Q2 Cost for Project A and Project B is RM500,000 respectively to implement the project and the rate of return is 10%. A five-year financial project has net cash flow for Project A and Project B as shown in Table 1 below. Table 1: Cash Flow Cash Flow (RM) Year Project A 1 2 3 4 5 Project B 1 2 3 4 5 50,000 150,000 350,000 600,000 500,000 75,000 100,000 150,000 150,000 90,000 (a) (b) Analyze Net Present Value (NPV) for Project A and Project B. (14 marks) Calculate Return on Investments (ROI) for Project A and Project B. (6 marks) Explain the most appropriate project to be selected, Based on the answer from Q2(i) and Q2(ii). (5 marks) END OF QUESTIONS (C)

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