Question: Quevo Sdn. Bhd. is undertaking a manufacturing project for the government. The startup costs for the project is expected to be RM1.1 million, and at

Quevo Sdn. Bhd. is undertaking a manufacturing project for the government.   The startup costs for the project is expected to be RM1.1 million, and at the end of the tenure of the project 40% of the costs can be recovered.  The company can opt to be paid based on the following cash flows:

 

Year

Option A

Cash Inflows

(RM)

Option B

Cash Inflows

(RM)

1

450,000

900,000

2

800,000

1,000,000

3

1,000,000

800,000

4

1,200,000

800,000

5

950,000

1,600,000

6

700,000

250,000

7

400,000

 

 

 

 

 

The cost of capital for the project is 6.15%. 

 

Calculate:

Discounted Payback Period

NPV

IRR

MIRR
PI

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