Question: 2. Cakk Arr Enterprise is considering two mutually exclusive project for their future investment. The company requires a rate of return to be 10 percent

2. Cakk Arr Enterprise is considering two mutually exclusive project for their future investment. The company requires a rate of return to be 10 percent per annum. The projected cash flow for both projects are shown as below: Expected Cash flow Year Raspberry (RM) Mulberry (RM) 0 (100,000) (15,000) 1 61,000 10,000 2 61,000 10.000 3 61,000 10,000 4 61,000 10,000 5 61,000 10,000 6 61,000 10,000 Based on the information given, calculate the following for both projects: (a) Payback period (6 marks) (b) Net Present Value (NPV) (8 marks) (c) Profitability Index (4 marks) (d) Explain the best project that Tokyo Rubber Corporation should consider. (2 marks)
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