Velocentrix Sdn Bhd is evaluating the data for two projects as follows:

Project A (RM) Project B (RM) Initial Investment 42,000 45,000 Year Operating Cash Inflow 1 14,000 28,000 2 14,000 12,000 3 14,000 10,000 4 14,000 10,000 5 14,000 10,000

For each project,

calculate the following capital budgeting techniques:

(a) Accounting Rate of Return (Assume salvage value = 0)

(b) Payback Period

(c) Net Present Value (Use cost of capital = 10 percent)

(d) Profitability Index (Use the same cost of capital in (c) above)