Question: You are given two project to evaluate, preject X and project Y. Each project cost is RM10,000 and the cost of capital is 12%. The

 You are given two project to evaluate, preject X and project

You are given two project to evaluate, preject X and project Y. Each project cost is RM10,000 and the cost of capital is 12%. The cash flow of the projects is as below i. Using all the information given, calculate the projects a. Payback period- x2.17 yeara y2.86 years b. NPVx966,01,y630,72 c. IRR x+18,11% ii. Explain which progect to be chosen. If the cest of capial of the project is 15%, what will be the projects NPV? Will you be choosing the same project with the new cost of eapital

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