Question: Replace 1. Following are the data for two projects taken from XYZ Company Project A (RM) 98,000 Project B (RM) 90.000 Initial Investment 47.000 Year

 Replace 1. Following are the data for two projects taken from

Replace 1. Following are the data for two projects taken from XYZ Company Project A (RM) 98,000 Project B (RM) 90.000 Initial Investment 47.000 Year 1 2 3 4 5 Operating Cash Inflow 34,000 34.000 44.000 34.000 30.000 34.000 30.000 34.000 30.000 Calculate and determine which project is better for each of the following capital budgeting techniques: i. Accounting Rate of Return (Assume salvage value = 0) ii. Payback Period iii. Net Present Value (Use cost of capital = 10%) iv. Profitability Index (Use the same cost of capital in ill. above)

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