Question: (3 marks) QUESTION 7 a) Cash flows on two mutually exclusive projects are as follows: Year 0 1 2 3 4 5 Project A (RM)

(3 marks) QUESTION 7 a) Cash flows on two mutually exclusive

(3 marks) QUESTION 7 a) Cash flows on two mutually exclusive projects are as follows: Year 0 1 2 3 4 5 Project A (RM) (600 000) 130 000 130 000 130 000 130 000 400 000 Project B (RM) (500 000) 200 000 140 000 140 000 140 000 80 000 The company's cost of capital is 12 per cent. Calculate the projects: - 1) Net Present Value and profitability index. Which project will be more viable? (12 marks)

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