QUESTIONS MODULE CODE MODULE TITLE EXAM BAND MAC 4603 : CORPORATE FINANCE : MARCH 2021 Procedure: Answer ALL questions Moonshine Corporation Ltd is planning to venture into a new project, and it is currently gauging the viability and profitability of FIVE (5) mutually exclusive projects. Provided below is the after-tax cash flow for both systems. Year 0 1 2 3 4 Project A (RM) (600.000) 100,000 150,000 200,000 230,000 270,000 Project B (RM) (600,000) 190.000 190,000 190,000 190,000 190,000 Project C (RM) (600,000) 120,000 140,000 160,000 180,000 200,000 Project D (RM) (600,000) 250,000 225,000 200,000 175,000 150,000 Project E (RM) (600,000) 170.000 210,000 260,000 130,000 110,000 5 Vital decision to be made before answering the question a, b, c and d: 1) Choose any TWO (2) from FIVE (5) projects to be evaluated 2) You determine the same expected rate of return for two projects. (Choose any rate between 8% to 14%) Based on the above information, calculate: a) The payback period for each project (6 Marks) b) The net present value for each project (8 Marks) c) Accounting rate of return for both project (4 Marks) d) Which project will you choose? Why? (2 Marks) Page 3 of 4