Pestel

682 Words3 Pages
QUESTION 1 You need to make a decision on whether to invest RM146300 in Project Y or Project Z that guarantees the following cash flow and annual relevant cost at the end of each year as indicated in the table below. PROJECT Y Year | Cash Flow | Cost | 1 | 40% of your investment | 2% of your investment | 2 | 42% of your investment | 2.3% of your investment | 3 | 38% of your investment | 3% of your investment | 4 | 33% of your investment | 3% of your investment | 5 | 22% of your investment | 2% of your investment | PROJECT Z Year | Cash Flow | Cost | 1 | 22% of your investment | 1% of your investment | 2 | 28% of your investment | 3% of your investment |…show more content…
PROJECT Y Year | Discount Factor | Discount Factor*NCF | Net Present Value (NPV) | 0 | 1/(1+0.10)=1 | 1*-RM146300 | -RM146300 | 1 | 1/(1+0.10)= 0.9091 | 0.9091*RM55594 | RM50540.50 | 2 | 1/(1+0.10)= 0.8264 | 0.8264*RM58081.10 | RM47998.22 | 3 | 1/(1+0.10)= 0.7513 | 0.7513*RM51205 | RM38470.32 | 4 | 1/(1+0.10)= 0.6830 | 0.6830*RM43890 | RM29976.87 | 5 | 1/(1+0.10)= 0.6209 | 0.6209*RM29260 | RM18167.53 | RM38853.44 | PROJECT Z Year | Discount Factor | Discount Factor*NCF | Net Present Value (NPV) | 0 | 1/(1+0.10)=1 | 1*-RM146300 | -RM146300 | 1 | 1/(1+0.10)=0.9091 | 0.9091*RM30723 | RM27930.28 | 2 | 1/(1+0.10)=0.8264 | 0.8264*RM36575 | RM30225.58 | 3 | 1/(1+0.10)=0.7513 | 0.7513*RM46816 | RM35172.86 | 4 | 1/(1+0.10)=0.6830 | 0.6830*RM52668 | RM35972.24 | 5 | 1/(1+0.10)=0.6209 | 0.6209*RM64372 | RM39968.57 | RM22969.53 | D) From your

More about Pestel

Open Document