Dhofar Art Gallery is adding to its existing buildings at a cost of 250000 OMR. The gallery expects to bring inadditional cash flows of 20000 OMR, 70000 OMR, and 100000 OMR over the next three years. Given a requiredrate of return of 10 percent, what is the NPV of this project?Select one:a. -54376.46 OMRO b. None of theseC. -56424.46 OMRO d. -64767.46 OMRO e. -98835.46 OMR

The NPV of the project can be computed as follows :

Answered: 20000 OMR, 70000 OMR, and 10000C ent,…

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20000 OMR, 70000 OMR, and 10000C ent, what is the NPV of this project?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

Dhofar Art Gallery is adding to its existing buildings at a cost of 250000 OMR. The gallery expects to bring in
additional cash flows of 20000 OMR, 70000 OMR, and 100000 OMR over the next three years. Given a required
rate of return of 10 percent, what is the NPV of this project?
Select one:
a. -54376.46 OMR
O b. None of these
C. -56424.46 OMR
O d. -64767.46 OMR
O e. -98835.46 OMR

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