Question: a. SinChan Corporation has successfully secured two projects to supply tires to Kancil and Kenari Automotive. Below is the information on the projects at a

 a. SinChan Corporation has successfully secured two projects to supply tires

a. SinChan Corporation has successfully secured two projects to supply tires to Kancil and Kenari Automotive. Below is the information on the projects at a required return of 10%. Year 0 1 2 3 4 Kancil RM70,000 RM25,000 RM20,000 RM25,000 RM35,000 Kenari RM60,000 RM15,000 RM25,000 RM40,000 RM35,000 Required: As a Finance Manager, you are required to calculate for both projects: i. net present value (8 marks) ii. payback period (4 marks) iii. profitability index (3 marks) a. SinChan Corporation has successfully secured two projects to supply tires to Kancil and Kenari Automotive. Below is the information on the projects at a required return of 10%. Year 0 1 2 3 4 Kancil RM70,000 RM25,000 RM20,000 RM25,000 RM35,000 Kenari RM60,000 RM15,000 RM25,000 RM40,000 RM35,000 Required: As a Finance Manager, you are required to calculate for both projects: i. net present value (8 marks) ii. payback period (4 marks) iii. profitability index

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