Question: QUESTION 1 Recently, Maxus Corporation has successfully secured a two projects to supply car leather to Alado Automotive and Great Wall Cars. Below is the

QUESTION 1 Recently, Maxus Corporation has successfully secured a two projects to supply car leather to Alado Automotive and Great Wall Cars. Below is the information on the projects at a required return of 10%. Great Wall Cars Year Alado Automotive 0 RM70,000 1RM25,000 2 RM20,000 13 RM25,000 4 RM35,000 RM60,000 RM15,000 RM25,000 RM40,000 RM35,000 a. As a Finance Manager, you are required to calculate: 1. Net present value 6m) ii. Payback period (2m) iii. Profitability index (2m) Total =(10 marks) b. Which project should be choose using NPV method. Why

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