QUESTION 1

Your first assignment in your new position as an assistant financial analyst at Delalang Berhad (DLB) is to evaluate three new capital-budgeting proposals. Because this is your first assignment, you have been asked not only to provide a recommendation, but also to respond to number of questions aimed at judging your understanding of the capital budgeting process. The expected cash flows from each project are as follows: Cash flows Project Daun Kesom Project Daun Sirih Project Daun Kunvit Initial investment RM 100,700 RM 100,700 RM 100,700 Cash inflows, vears 1-5 RM 32,500 RM 31,500 RM 30,000 In evaluating these projects, please respond to the following questions.

The expected cash flows from each project are as follows:

Cash flows	Project Daun Kesom	Project Daun Sirih	Project Daun Kunvit
Initial investment	RM 100,700	RM 100,700	RM 100,700
Cash inflows, vears 1-5	RM 32,500	RM 31,500	RM 30,000

In evaluating these projects, please respond to the following questions.

answer part D is:

NPV of Project Daun Kesom is amounting to $13,610.02

NPV of Project Daun Sirih is amounting to $10,092.78

NPV of Project Daun Kunvit is amounting to $4,816.94

e.Based on your answer in part (d), which of this projecUs should be accepted if these projects are an independent project. Explain your answer. (2 Marks)

f. Based on your answer in part (d), which of this projecUs should be accepted if these projects are mutually exclusive project. Explain your answer. (2 Marks)