Question: You are considering two following mutually exclusive projects: 1) 111) Year 0 12345 Investment A (RM100,000) 33,000 33,000 33,000 33,000 33,000 Investment B (RM120,000)

You are considering two following mutually exclusive projects: 1) 111) Year 0

You are considering two following mutually exclusive projects: 1) 111) Year 0 12345 Investment A (RM100,000) 33,000 33,000 33,000 33,000 33,000 Investment B (RM120,000) 0 0 0 0 240,000 I Calculate each project's payback period. Calculate each project's net present value (NPV) if the required rate of return on the projects is 12%. Compute the internal rate of return (IRR) for Investment A only. a) Justify which project should be selected based on the calculated NPV. b) Will your decision be the same if they are independent projects? Why?

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