Question 1: What is Finance? Explain the role of Financial Manager?
Question 2: As a Financial Analyst, you are considering an investment that costs RM100,000.
You have offered to invest in 2 projects. Each project has 9% level of risk (discount rate). These
are the following cash flows for both project:
Year
Project A
Project B
0
(RM100,000)
(RM100,000)
1
25000
27500
2
25000
22500
3
25000
17500
4
25000
17500
You are required to calculate:
i. Net present value
ii. Payback Period
iii. Which project or projects should be accepted and why
iv. What method should be the primary decision rule?