A company has estimated the expected cash flows for two mutually exclusive projects as follows: Year Project 0 1 2 3 (RM'000) (RM'000) (RM'000) (RM'000) (RM'000) 1 (600) 400 300 300 100 2 (400) 200 150 150 150 Required: (a) Determine the net present value for both projects at a 20% cost of capital. (5 marks) (b) Calculate the internal rate of return for both projects. (c) (d) (7 marks) Since Project 1 and Project 2 are mutually exclusive, which project should management select? Why? (3 marks) In a situation where there is capital rationing, calculate the profitability index for both projects and rank them accordingly. (5 marks)