NEUC Investment Berhad is to review two new proposals for spending money on specific projects. Since this is your first: Financial Management Report, MMU, Malaysia

Your first task as an employee at NEUC Investment Berhad is to review two new proposals for spending money on specific projects. Since this is your first assignment, you’re expected to not only give your opinion but also answer some questions to show that you understand how the process of deciding where to invest money works.

This is a standard procedure for all new employees at NEUC Investment Berhad. The outcome of this task will determine whether you directly join the department that analyses where to invest money or if you need some extra training first. The information about your task is in the message below: To: Financial Management Department From: Mr. Lim Yen, CEO, NEUC Investment Berhad Subject: Which projects should be chosen? Your job is to evaluate two projects that are being considered.

Both projects are expected to last for 5 years and will cost the same amount initially, which is RM110,000. Both of these projects are about adding to NEUC’s successful “Bubble Tea” product line. Because of this, the company has decided that the expected rate of return for these projects is 12 percent. The predicted amount of money the projects will generate, which we call “free cash flows,” is provided for each project below:

Answer

Request Answer of this Assignment