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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