1. A project manager is using the net present value method to make the final decision on which project to undertake. The company has a 12% required rate of return and expects a 3% rate of inflation for the following four years. What is the NPV of a project that has cash flows as shown in the table? (Round your answers into TWO (2) decimal points)

(10 marks)

Year	Cash Flow (RM)
0	(250,000)
1	50,000
2	60,000
3	70,000
4	80,000

1. Inatech is contemplating two different projects and decides to perform a financial analysis to determine which is more financially lucrative. Project A and B have the cash flows as shown and Inatech uses a required rate of return of 10% and an inflation rate of 4%. Compute the payback in years and the net present value for both projects and offer advice as to the best course of action. (Round your answers into TWO (2) decimal points)

(22 marks)

Year	A (RM)	B (RM)
0	(250,000)	(400,000)
1	75,000	125,000
2	155,000	230,000
3	200,000	288,000
4	175,000	265,000
5	160,000	225,000