Question: use given table for 12% discount factor WILLIAM Bhd has to decide which one of two projects should be taken up. The following information is

use given table for 12% discount factor

WILLIAM Bhd has to decide which one of two projects should be taken up. The following information is available: i. The initial investment would be RM200,000 and cost of capital is 12%. There is no scrap value for the fixed assets used. The net cash in flows from two projects are estimated as: Year Project I (RM) Project G (RM 1 700.000 60.000 2 80,000 50.000 3 70,000 50.000 4 50,000 5 60.000 Determine which project should choose by WILLIAM Bhd under: C. Internal Rate of Return (Using 10% and 15%) PRESENT VALUE TABLE Present value of $1, that is (1+r)" where r = interest rate; n = number of periods until payment or receipt 1% Periods (n) 1 2 3 4 5 6 7 8 9 10 0.906 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 0.853 0.844 0.836 0.828 0.820 2% 3% 4% 0.980 0.971 0.962 0.961 0.943 0.925 0.942 0.915 0.889 0.924 0.888 0.855 0.863 0.822 0.888 0.837 0.790 0.871 0.813 0.760 0.853 0.789 0.731 0.837 0.766 0.703 0.820 0.744 0.676 0.804 0.722 0.650 0.788 0.701 0.625 0.773 0.681 0.601 0.758 0.661 0.577 0.743 0.642 0.555 0.728 0.623 0.534 0.714 0.605 0.513 0.700 0.587 0.494 0.686 0.570 0.475 0.673 0.554 0.456 Interest rates (0) 5% 6% 0.952 0.943 0.907 0.890 0.864 0.840 0.823 0.792 0.784 0.747 0.746 0705 0.711 0.665 0.677 0.627 0.645 0.592 0.614 0.558 0.585 0.527 0.557 0.497 0.530 0.469 0.505 0.442 0.481 0.417 0,458 0.394 0.436 0.371 0.416 0.350 0.396 0.331 0.377 0.312 7% 0.935 0.873 0.816 0.763 0.713 0.666 0.623 0.582 0.544 0.508 0.475 0.444 0.415 0.388 0.362 0.339 0.317 0.296 0.277 0.258 8% 0.926 0.857 0.794 0.735 0.681 0.630 0.583 0.540 0.500 0.463 0.429 0.397 0.368 0.340 0.315 0.292 0.270 0.250 0.232 0.215 9% 0.917 0.842 0.772 0.708 0.650 0.596 0.547 0.502 0.460 0.422 0.388 0.356 0.326 0.299 0.275 0.252 0.231 0.212 0.194 0.178 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 0.218 0.198 0.180 0.164 0.149 12 13 14 15 16 17 18 19 20 Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 11% 0.901 0.812 0.731 0.659 0.593 0.535 0.482 0.434 0.391 0.352 0.317 0.286 0.258 0.232 0.209 0.188 0.170 0.153 0.138 0.124 12% 13% 14% 0.893 0.885 0.877 0.797 0.783 0.769 0.712 0.693 0.675 0.636 0.613 0.592 0.567 0.543 0.519 0.507 0.480 0.456 0.452 0.425 0.400 0.404 0.376 0.351 0.361 0.333 0.308 0.322 0.295 0.270 0.287 0.261 0.237 0.257 0.231 0.208 0.229 0.204 0.182 0.205 0.181 0.160 0.183 0.160 0.140 0.163 0.141 0.123 0.146 0.108 0.130 0.111 0.095 0.116 0.098 0.083 0.104 0.087 0.073 Interest rates 15% 16% 0.870 0.862 0.756 0.743 0.658 0.641 0.572 0.552 0.497 0.476 0.432 0.410 0.376 0.354 0.327 0.305 0.284 0.263 0.247 0.227 0.215 0.195 0.187 0.168 0.163 0.145 0.141 0.125 0.123 0.108 0.107 0.093 0.093 0.080 0.081 0.069 0.070 0.060 0.061 0.051 17% 0.855 0.731 0.624 0.534 0.456 0.390 0.333 0.285 0.243 0.208 0.178 0.152 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.043 18% 0.847 0.718 0.609 0.516 0.437 0.370 0.314 0.266 0.225 0.191 0.162 0.137 0.116 0.099 0.084 0.071 0.060 0.051 0.043 0.037 19% 0.840 0.706 0.593 0.499 0.419 0.352 0.296 0.249 0.209 0.176 0.148 0.124 0.104 0.088 0.079 0.062 0.052 0.044 0.037 0.031 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.093 0.078 0.065 0.054 0.045 0.038 0.031 0.026 0.125
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