Cocoa Company is evaluating an investment shown below. The investment will acquire an initial investment of RM 50,000. The cost of capital is 11 percent and the cash inflows are as follows:- Year Main...

Cocoa Company is evaluating an investment shown below. The investment will acquire an initial investment of RM 50,000. The cost of capital is 11 percent and the cash inflows are as follows:-

Year Main Complex
1 RM 15,000
2 RM 10,000
3 RM 12,500
4 RM 15,000
5 RM 30,000
Based on the above information, calculate for Cocoa Company:
i. Payback period
ii. Net Present Value (NPV)
iii. Profitability index

b. After calculating the first investment, Cocoa Company found another investment.
Project B costs RM1,120,000 and having payback period of 3.50 years, discounted
payback period of 4.44 years, Net Present Value (NPV) of RM 460,000 and Profitability
Index of 1.41. Which project would you recommend considering all?