Question 1 Dato Dzul is considering two mutually exclusive projects, Project West Ham and Project Averton. Project West Ham will require an initial outlay of RM 50,200 and Project Averton require an initial outlay of 51,000. This project has an expected life of 5 years and will generate free cash flows to the company as follows. Project West Ham Project Averton Year 1 RM 10,608 RM 15,000 Year 2 RM 10,608 RM 15,000 Year 3 RM 10,608 RM 15,000 Year 4 RM 10,608 RM 15,000 Year 5 RM 25,000 RM 15,000 Given a required rate of return of 5%, answer the following: a. calculate the payback period for both projects. b. calculate the net present value for both projects. C. calculate the profitability index for both projects. d. calculate the internal rate of return for project West Ham. (1 Marks) (4 Marks) (1 Marks) (5 Marks) e. Based on your answer in (a), (b) and (c) justify, which project should Dato Dzul invest in. Explain your answer. (1.5 Marks) (Total: 12.5 Marks) Question 2 a. Assume you are a financial manager, managing your client investment. Your client has three options of investment as presented below. Investment 1 Yang Lang Inc's common stock current dividend (Do) is RM0.40, and is expected to grow at a rate of 6% annually. Investment 2 Alamanda Inc's dividend will grow at a rate of 40% this year, 25% next year, 23% and 10% thereafter. The current dividend (Do) is RM0.80. Investment 3 Chamomile Inc's preferred stock pays a RM2.75 dividend. From the above information you are required to: i. determine the price of today's stocks for each, if the required rate of return is 15%, (8 Marks)