Answer all questions [Please show all your workings]. Part 1 (60 marks) Apart from opening a new store in Shah Alam, a company is also considering opening a store in Petaling Jaya. Like the Shah Alam store, this store will have the same initial cost of RM 1,000,000. The company must now decide which store to invest in: Shah Alam or Petaling Jaya. The company has an 8% cost of capital. The cash inflows associated with each proposed store are shown in the following Table 1. Table 1 Year (t) Shah Alam RM 100,000 1 Petaling Jaya RM 250,000 250,000 2 RM 200,000 RM 3 RM 300,000 RM 250,000 4 RM 400,000 RM 250,000 5 RM 500,000 RM 250,000 a. Calculate the payback period for each proposed store. (10 marks) (10 marks) b. Calculate the net present value (NPV) for each proposed store. c. Calculate the internal rate of return (IRR), rounded to the nearest whole per cent, for each proposed store. (10 marks) d. Draw the net present value profiles for each store on the same set of axes and discuss any conflict in ranking that may exist between NPV and IRR. (15 marks) e. Evaluate the acceptability of each proposed store dictated by each measure and indicate which project you would recommend. Explain why. (15 marks) (Total: 60 marks)