Question: Project B ' s initial outlay is RM 1 , 8 0 0 , 0 0 0 excluding the purchase of fixed asset of RM

Project B's initial outlay is RM1,800,000 excluding the purchase of fixed asset of RM250,000. The cash flows are RM440,000 in year one, RM1,000,000 in year two, RM560,000 in year three, RM450,000 in year four and the final year is RM200,000. At the termination of the project, 50% of the fixed asset value can be recovered. Assume cost of project of 6.23%.
The initial outlay is RM_____________.
The terminal value is RM___________.
The total present value is RM_____________.
Total future value is RM____________.
The project's PP is _______ period.
The project's DPP is _______ period.
The project's NPV RM_____________.
The project's PI_____________.
The project's IRR is _____________%.
The project's MIRR is _____________%.
The project's EAA is RM___________________.
Based on EAA, the company should accept project B as the total will be more.
True
False
Overall assessment based on Capital Budgeting Techniques, Project B should accepted.
True
False

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