Assuming that you have been appointed finance director of BPX Bhd. The company is considering investing in the production of an electronic device used in automobile. There are two mutually exclusive projects available to achieve the plan. State of economy Probability Good Moderate Poor 0.3 0.5 0.2 Project II Return in one year (RM) Project I 60,000 60,000 50,000 58,000 62,000 48,000

A firm wants to start a project. A team of financial analysts estimated the following cash flows year                  cash flow 0                     -$100,000 1                          55,000 2                         43,000 3                         45,000 Based on your calcification of the pay back period and if the cut off point is 2 years, the project should   Group of answer choices Undertake the project Can not decide because we do not have enough information not undertake the project in the short run but undertake the project in the long run Not undertake the project

Co. has an investment opportunity (Project B) that requires a cash outlay of $18,000 today. They estimate that they will receive in exchange $6,200 in year 1, $6,500 in year 2, and $8,200 in year 3. Our Co 10. Marvelous me a) What are the IRR and the NPV of Project B? b) If the discount rate is 10%, would you invest in Project B? c) Let's imagine that we had a second project (Project B) that has an IRR of 18%. If the crossover rate between these two projects is 13%, which project would you choose when the appropriate discount rate is below that crossover rate?

TWITTERCO has an opportunity to invest in two business initiatives: MUSK #3 & MUSK #4 Expected cash flow data for these two projects is shown below: M #3 M #4 -250 90 90 90 90 2022 2023 2024 2025 2026 -250 105 105 105 TwitterCo has a cost of capital for these projects of 14%. Calculate the NPV of these projects. Project M#3 NPV: Project M#4 NPV: Based on NPV, preferred is: If both projects can be undertaken, should they?