Question: Question 4 Carson Sdn Bhd is considering which of two mutually exclusive projects it should undertake. Details of the projects cash flows are given below:

Question 4

Carson Sdn Bhd is considering which of two mutually exclusive projects it should undertake. Details of the projects cash flows are given below:

Year Project A (RM) Project B (RM)

0 (20,000) (20,000)

1 4,600 11,200

2 6,200 8,600

3 8,000 6,600

4 10,600 0

The companys cost of capital is 12%.

Required:

  1. Calculate the projects on the basis of:

  1. Payback period

(4 marks)

  1. Net present value

(6 marks)

  1. Internal rate of return

(10 marks)

  1. Dicuss the any TWO (2) advantages and disadvantages of using payback period

(5 marks)

(Total: 25 marks)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Question 4 Sylvon Sdn Bhd is considering which of two mutually exclusive projects it should undertake. Details of the projects' cash flows are given below Year Project A (RM) 0 (20.000) 1 4,600 2...

Q:

4. (15%) Consider the following two mutually exclusive projects, X and Y, and their cash flows information, Project Year 0 ($2,600) (S2,700) Year 1 $1,000 S500 Cash Flows Year 2 $1,500 S950 Year 3...

Q:

3. Consider the following two mutually exclusive projects, X and Y, and their cash flows information, Project Year 0 Year 1 Year 2 Year 3 Year 4 X ($1,400) $350 $750 $650 $650 Y ($1,000) $300 $400...

Q:

Consider the following two mutually exclusive projects, X and Y, and their cash flows information, Cash Flows Project Year 0 Year 1 Year 2 Year 3 Year 4 X (2,600) 1,000 1,450 600 500 Y (2,600) 1,100...

Q:

Consider the following two mutually exclusive projects, X and Y, and their cash flows information, Cash Flows Project Year 0 Year 1 Year 2 Year 3 Year 4 X ($2,600) $1,000 $1,300 $ 800 $ 400 Y...

Q:

Question 8 Your company is considering two mutually exclusive projects. The projects have the following cash flows: Year Project A Project B Cash Flows Cash Flows $(1 200.00) S(1,100.00) $ 200.00 $...

Q:

Question 24 1 pts You are considering the following two mutually exclusive projects. Which project(s) should be recommended? Project A Project B Year Cash Flow Year Cash Flow 0 $75,000 0 -$70,000 1...

Q:

Please show work without using excel please. thank you! Your company is considering two mutually exclusive projects. The projects have the following cash flows: Project A Year Cash Flows 0 -$1,200 1...

Q:

Your company is considering two mutually exclusive projects. The projects have the following cash flows: Project A Year Cash Flows Project B Cash Flows 0 -$1,950 -$1,800 1 +$ 400 +$ 800 2 +$ 500 +$...

Q:

Kindly answer the following questions. FV is not defined, I know hence why I am stuck. 6. Immunizing a bond portfolio: An insurance company must make a payment of $19,487 in seven years. The market...

Q:

James and Suzanne engaged in the grocery business as partners. In one year they earned considerable money, and at the end of the year they invested a part of the profits in oil land, taking title to...

Q:

If you rent an apartment, you pay monthly rent expense. The rent payment is fixed each month and it ends at a specific period - usually after 12 months. If you want to make ONE payment to your...

Q:

49.8 Remake 11

Q:

Select a brand. Explain and discuss its strategies to build and maintain a profitable and satisfied customer portfolio. List at least 3 examples showing how your brand creates customer engagement on...

Q:

7. Develop a circular model, with positive and negative feedback loops, showing the following critical variables:

Q:

Technology

Q:

Population