LEXUS BERHAD Lexus Berhad is considering two mutually exclusive projects, A and B. Project A costs RM80,000, with additi

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Lexus Berhad Lexus Berhad Is Considering Two Mutually Exclusive Projects A And B Project A Costs Rm80 000 With Additi 1 (78 KiB) Viewed 45 times

LEXUS BERHAD Lexus Berhad is considering two mutually exclusive projects, A and B. Project A costs RM80,000, with additional working capital of RM15,000. The project is expected to generate RM65,000 in year one and RM75,000 in year two, and final disbursement in year 3 is 30% of the project cost. Project B costs RM120,000, inclusive of purchase of fixed asset of RM20,000. The cash flows are RM64,000 in year one, RM67.000 in year two, RM56,000 in year three, and RM45,000 in year four. At the termination of the project, 50% of the fixed asset value can be recovered The firm's required rate of return and reinvestment rate for these projects is 7.25%. Note: reinvestment value refers to future value 1. Total PV of project A's cash flows is RM_____(2 decimals) 2. Payback period of project A is --------- period. 3. The Discounted Payback Period for project Ais years. (2 decimals) 4. The NPV of project A is RM_________ (2 decimals) 5. The IRR of project A is __%. (2 decimals) 6. The profitability index (Pl) of project Ais 7. The value of project A's cash flow reinvestment in year 1 is RM (2 decimals) 8. The value of project A's cash flow reinvestment in year 3 is RM_ (2 decimals) 9. The PV of project B's cash flow in year 3 is RM_ (2 decimals) 10. The PV of project B's cash flow in year 4 is RM _ (2 decimals) 11. The NPV for project B is RM_______ (2 decimals) 12. The IRR of project B is __%. (2 decimals) 13. Total reinvestment of project B's cash flow is RM (2 decimals) 14. The MIRR of project Bis ________%. (2 decimals) -