QUESTION 2 You are considering two projects, Project A and Project B. The initial cash outlay associated with Project A is RM35,000 and inuinl cash outlay associated with Project B is RM40,000. The discount rate on both projects is 10% The expected annual cash flows from each project are as follows: 97517 06830 Project B (RM40,000) 10,000 10,000 8,000 16,000 Project A (RM35,000) 8,000 13,000 15,000 20,000 Year 1 2 3 4 Required: a) Calculate the project's payback period for botth projects. Which project or projects should be accepted if they are independent? Why? (7 marks) (CLO3:PLO2:C4) b) Calculate the discounted payback period for both projects. Which project should be accepted if they are mutually exclusive? Why? (9 marks) (CLO3:PLO2:C4) Determine the profitability index for both projects. Which project or projects should be c) accepted if they are independent? Why? (5 marks) (CLO3:PLO2:C4) Determine the net present value (NPV) for both projects using the discount rate of 10%. Which project should be chosen if both projects are mutually exclusive and why? (5 marks) (CLO1:PLO2:C4) d)