Q1 (a) State two differences between simple interest and compound interest. (4 marks) (CLO1:PLO2:04) (b) Find the future value of RM 8000 which was invested for 2 years 6 months at 6% compounded quarterly. (4 marks) (CLO3:PLO6:C3) (c) Two mutually exclusive projects have projected cash flow as follows. Year 0 1 2 3 4 Project A -RM200,000 RM90,000 RM90,000 RM90,000 RM90,000 Project B -RM140,000 RM60,000 RM60,000 RM60,000 RM60,000 Project A requires an initial outlay of RM200,000 while Project B requires an initial outlay of RM140,000. If the required rate of return is 12%, determine the net present value, NPV, for each project. Due to labor constraint, only one project can be selected. Which project should be selected? Why