QUESTION 4 The initial cash outlay for project A is RM12,000. Project A's discount rate is 10 percent and the expected a

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Question 4 The Initial Cash Outlay For Project A Is Rm12 000 Project A S Discount Rate Is 10 Percent And The Expected A 1 (71.75 KiB) Viewed 89 times

QUESTION 4 The initial cash outlay for project A is RM12,000. Project A's discount rate is 10 percent and the expected annual cash flows are as follows: Year 0 1 2 3 4 Project A - RM 12,000 RM 6,500 RM 3,000 RM 3,000 RM 2,000 Required: (a) Calculate the Net Present Value (NPV) (b) Calculate the internal rate of return. (c) (d) How do we decide if a capital investment project should be accepted or rejected? Calculate the Adjusted Present Value (APV), if the firm finances the project with RM8,000 of debt at 7% and the tax rate is 45%.