QUESTION 5 (20 MARKS) DEF Company is considering to accept one of the following two projects....

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QUESTION 5 (20 MARKS) DEF Company is considering to accept one of the following two projects. The cash flow of the two projects are as follows: Year 0 1 2 3 4 5 Project X (RM) (50,000) 15625 15625 15625 15625 15625 Project Y (RM) (50,000) 0 0 0 0 100,000 The company's cost of capital is 10 percent. Calculate and answers to the followings: (a) Payback period for both projects. (b) Net present value for both projects. (c) Profitability Index for project X and Y. (6 marks) (8 marks) (4 marks) (d) Which project would you choose and state your reasons. (2 marks) QUESTION 5 (20 MARKS) DEF Company is considering to accept one of the following two projects. The cash flow of the two projects are as follows: Year 0 1 2 3 4 5 Project X (RM) (50,000) 15625 15625 15625 15625 15625 Project Y (RM) (50,000) 0 0 0 0 100,000 The company's cost of capital is 10 percent. Calculate and answers to the followings: (a) Payback period for both projects. (b) Net present value for both projects. (c) Profitability Index for project X and Y. (6 marks) (8 marks) (4 marks) (d) Which project would you choose and state your reasons. (2 marks)