answer

4
- year
month
payback period RM105m

4.2
=

RM 25m 12 days

4.2 years
=

pay back 1B1

year RmlOmilion A

3
1 t
=
=

period
-

Rm 13 million G
year 2
=

information
year 3 km 16 million paybach 3 +1=11/
given
=

period
0.
Year 4
=

Rm 1 million

year 5:RM 22 million 3

= +

cush inflow-cash outflow 3.58. 3-b

=
=

Il 11
Duration cash FIOW accumulated cash Flow

year O
-

50 million -
50 million
I 10 million 50 10 = -40 million
year
+
-

13 million 40 13 27 million
year 2
=
+
-
-

year 3 16 million
-

27 16
+

=-11 million

year 4 19 million -11 19

+
8 million
=

million 8 22 30 million
year5 22
=

* period
A last
:
with negative value. (choose years)
B absolute
=

period at the end of A (value of accumulated)

C:total cash flow during period after A
 C. C2, C... CaSh flow
=

by years
cashflow:cash inflow
cash-outflow

Kelnarkal
~
duit

0.01
Discount rate =

year 1 RM
=
200,000
2 RM 300,000
year =

year 3:Rm 200,000

I 1 11-500,000 I
year Cash inflow Cash outflow cash flow

O ⑧ -

500,000

I 200,000 0 200,000
2 300,000 I 300,000
3 20,000 O 20,000

NPL =
-500,000 200,000
+ 300,000
+ + 20,000

11 0.1)
+

(1 0.1)
+

(1+ 0.163

=
-

500,000 +

181,818 +

247,934 158,263
+

I
80,015x
orror
carorstrontier l
PV

=, !1:
I
PF0 =>

years
DF, =1 0.909
=
DF= r) +

"

(1-1)

DF2 1
=

0.826
=

(1.1)

DF = I 0.751
3
=

3
(1.1)
Exercise Financial Model

&

Project A
year Revenue Outlays
year O ⑧ RM 500,00 payback period:2 + 300,000

year /RM50,000 - RM 450,000 350,000

year 2 RM150,000 -P-M300,000 2
=

0.86
+

RM350,000 Rm 50,000
year 3
2.86
=

year 4 RM600,000 km 110,000

year5 RM500,000 Rm 500, 110

Project B

year Revenue Outlays

years 0 RM500,000 payback period 4 +
=
25,000
year I RM75000 kM425,000
-

/
900,000

year 2 RM100,000 -
Rm 325,000 =4 +
0-03
year 3 RM150,000 RM 175,000
4-03
- =

year4 RM 150,000 -
RM 25,000

year 5 Rm 900,000 AM 875,000

-
project Ais more attractive investment because
ithas shorter payback period of 2.86 years

compared to project B4.83 years.

 11.

I I 11 I
cash cash outflow Cash Flow
year inflow

Yo ⑧ Rm 100,000
Y, RM 20,000 0
im 10888
Yz RM 50,000 O RM 58,000
33 RM 50,000 ⑧ RM 50,000
Y4RM25,000 ⑧ RM 25,000

NPV 100,000
=
+
20,000 + 50,000 50.000
+ 25,000
+

11 0.14) ( 1 0.14) (1+0.14)" (1+0-14)*

+
+

100,000
=

17,543
+

38,473
+

33,748
+
+ 14,802
204566
=

RM
204566X
=

:Since the investing is positive Rm 204566,50 it is

good to invest.
 Discount UCHe
=0.12

ProjectXX

year cash inflow Cash Outflow cash flow

0 0 5000 -
5000
I 3588 O 3500
2 700 O 700
3 400 O 400

4 6000 O 6008
5 2000 O 2000

nPV = -

5008 I 3508 I 700 400

+
6000
+

2
3 4

(1+ 0.125(10-12) (1 + 0-12) (1 0-12)

+

+ 2008
4
(1+0.12)

-
=
5000 +

3125 558.84 284.71

+ +
3813.11
+

+ 1134.85

3915.71x
=
 0-1

lol I
year cash inflow Cash outflow cash flOW

5000 5008
-
-

⑧ 2500

8
2000
2000

nPV =
-
5000 + 2500 +2008 2000
+

(1 0.1)
+

(1+ 0.11(1+0.1)

= -

5000 2272.73
+ +

1652-89 1582.63
+

490.62x
=
project ROI total expected
=

benefits -

total expected costs

total expected costs

RO1 (RM25000.00 RM20000.00)

=

m
R
20,000-08

kM5008
=

12m 20000.00

0-25x100
=

=
25%
breaneven point:initial investment
net profit margin

(profit margin)
Rm 120.00-RM50.00 RM +10.00
=

RM 160,000.00 RM
=

2285-714
Rm 70.00 Rm
=

2286