Solution-Apply the npv criterion and state which investment

Apply the npv criterion and state which investment is chosen

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Reference no: EM133045536

Question - Consider the following are mutually exclusive project. Whichever project that will be chosen, a 15% return is required on both investment.

Year	Cash Flow (M)	Cash Flow (N)
0	(RM350,000)	(RM40,000)
1	RM30,000	RM19,000
2	RM60,000	RM12,000
3	RM60,000	RM18,000
4	RM400,000	RM10,500

Required -

i. Apply the discounted payback criterion and state which investment is chosen.

ii. Apply the NPV criterion and state which investment is chosen.

Reference no: EM133045536

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Apply the npv criterion and state which investment is chosen

Reference no: EM133045536

Reference no: EM133045536

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