Jengka Berhad is evaluating two projects that are mutually exclusive with initial investments and cash flows as fellows. The firm has a 12% of cost of capital.

	Cash Flows (RM)
YEAR (t)	Project X	Project Y
0	(450,000)	(450,000)
1	135,000	225,000
2	135,000	180,000
3	135,000	90,000
4	135,000	90,000
5	135,000	90,000
6	135,000	90,000

1. Calculate the payback period for each project.

2. Calculate the NPV of each project at 12% 3. Calculate the NPV of each project at 0%

4. Calculate the IRR of each project

5. Rank the projects by each of the techniques - used. Make and justify a recommendation.

6. Using a cost of capital at 15%, recalculate the NPV Of each project. Does the ranking of Project X and Project Y changed compared to your answer in part v ? Explain