1. Bright Sdn. Bhd. has three projects under consideration. The companys cost of capital is 15% with an initial investment of RM50,000. The cash ows for each project are as follows:

Year	Project A (RM)	Project B (RM)	Project C (RM)
1	18,000	0	25,000
2	18,000	0	20,000
3	18,000	0	18,000
4	18,000	30,000	15,000
5	18,000	30,000	10,000

You are required to calculate:

1. Payback period for each project.

2. Net present value for each project.

3. Internal rate of return for Project A.

( 3 )

( 9 )

( 5 )

4. Based on the payback period and net present value methods, which project should be selected? Explain your answer.

( 3 )

( Total / Jumlah: 20 )