Answer to Question #213099 in Finance for suha

Question

Pharmaniaga Berhad is in the process of selecting a better investment from two

equally risky projects. Project A and B requires initial capital of RM100,000 and

RM150,000 respectively. The cash inflows of each projects are shown below:

Year

Project A (RM)

Project B (RM)

1

35,000

45,000

2

40,000

45,000

3

50,000

45,000

4

60,000

45,000 

Answer 1

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