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finance

Aziz has the opportunity to invest in projects A and B. The initial investment for both projects is RM8,500 and RM7,500 respectively. The required rate of return for this investment is 12%. Project A is expected to reap a yearly income of RM3,000 maintain for the first three years, RM5,000 and RM6,000 for years four and five. The expected yearly income for project B is RM2,000, RM2,000, RM2,000, RM3,000, and RM4,000. Compute the discounted payback period both project A and B. Using the range of the project of income flows and initial investments mentioned in above, and using the Present Value Annuity Table to find the estimated Internal Rate of Return (IRR). Use a financial table.


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