2/2 100% + a. Layang Indah Sdn Bhd is evaluating two (2) mutually exclusive projects. You have been asked to analyze two investment proposals. The cash flows in RM of each project are as shown below, and the required rate of return is 10%. Year Project XX Project YY 0 (500,000) (600,000) 1 50,000 200,000 2 150,000 200,000 3 250,000 200,000 4 200,000 200,000 S 100,000 200,000 Based on the above information, calculate for Project XX and Project YY: i. Payback period. (4 marks) ii. Net Present Value (NPV) (10marks) 111. Profitability index. (4 marks) iv. Which project should be selected? State your reason. (2 marks) QUESTION 2 a. You have decided that you would like to own some shares of Jaya Corp. but need an expected 9 percent rate of return to compensate for the perceived risk of such ownership. What is the maximum price you are willing to spend per share to buy Jaya stock if the company pays a constant RM2.30 annual dividend per share? (4 marks) b. Pastrys' stock is expected to pay a year-end dividend, of RM2.00 per share. The dividend is expected to grow at a constant rate of 5%, and the stock has a required retum of 9%. What is the expected price of the stock five years from today? (6 marks) prt sc 36 8 home W end