Question: please help a) Layang Indah Sdn Bhd is evaluating two (2) mutually exclusive projects. The cash flows in RM of each project are as follows:

 please help a) Layang Indah Sdn Bhd is evaluating two (2)

please help

a) Layang Indah Sdn Bhd is evaluating two (2) mutually exclusive projects. The cash flows in RM of each project are as follows: Year Project XX (RM) Project YY (RM) 0 500.000 600.000 1 50.000 200,000 2 150,000 200,000 3 250,000 200.000 4 200.000 200.000 5 100.000 200.000 The company's required rate of return is 10%. By using the following techniques in capital budgeting, which project should the Layang Indah Sdn Bhd undertakes and why? 0 Payback period Net present value (14 marks) b) The internal rate of return (IRR) for Project YY only. (Do Interpolation). (6 marks)

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