QUESTION 5Invest in any or all of the four projects whose relevant cash flows are given in the following table.The firm has RM7,000,000 budgeted to fund these projects, all of which are known to beacceptable. Initial investment for each project is the same for all projects which is RM1,600,000.The rate of retum for all projects is equivalent to 8%.Operating cash outflowProject XProject YYear 1Cash OutflowRM1,600,000 (for each project)RM440,000340,000220,000(110,000)( 95,000 )105,000Operating Cash InflowsRM140,000180,000250,000260,000370,000460,00012.3.4.5.6.7.220,000388,0008.9.Use this table for PROJECT X and YPeriodPVIF 8%0.92590.857330.793840.73500.68060.630270.583580.54030.5002100.4632 Compute the following for each option.1. The NPV for each projects2. The ANPV for each investment projects3. Payback period for all projects4. Profitability index for all project5. Recommend which projects is more favorable in terms of accept-reject or rankingdecisions.

Hi, since you have posted a question with multiple sub-parts, we will answer the first three…

Invest in any or all of the four projects whose relevant cash flows are given in the following table. The firm has RM7,000,000 budgeted to fund these projects, all of which are known to be acceptable. Initial investment for each project is the same for all projects which is RM1,600,000. The rate of return for all projects is equivalent to 8%. Operating cash outflow Project X Year 1 Cash Outflow Project Y RM1,600,000 (for each project) RM 440,000 340,000 220,000 Operating Cash Inflows RM 140,000 180,000 250,000 260,000 1 2. 3. (110,000) ( 95,000 ) 105,000 4. 5. 6. 370,000 460,000 7. 220,000 388,000 8. 9. Use this table for PROJECT X and Y Period PVIF 8% 0.9259 0.8573 1 3 4 0.7938 0.7350 5 0.6806 6. 0.6302 7 0.5835 8 0.5403 0.5002 10 0.4632

Invest in any or all of the four projects whose relevant cash flows are given in the following table. The firm has RM7,000,000 budgeted to fund these projects, all of which are known to be acceptable. Initial investment for each project is the same for all projects which is RM1,600,000. The rate of return for all projects is equivalent to 8%. Operating cash outflow Project X Year 1 Cash Outflow Project Y RM1,600,000 (for each project) RM 440,000 340,000 220,000 Operating Cash Inflows RM 140,000 180,000 250,000 260,000 1 2. 3. (110,000) ( 95,000 ) 105,000 4. 5. 6. 370,000 460,000 7. 220,000 388,000 8. 9. Use this table for PROJECT X and Y Period PVIF 8% 0.9259 0.8573 1 3 4 0.7938 0.7350 5 0.6806 6. 0.6302 7 0.5835 8 0.5403 0.5002 10 0.4632

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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