A) Identify and classify the project into Replacement decision,Expansion decision, Diversification decision, Safety and/or environmental projects, Independent Projects, Mutually-exclusive project and Dependent Projects/Contingent Projects: B) Also mention the reasons for the classification. 1. Oman Insurance Company started their new branch in Salalah. 2. Badar Al Sama Hospital entered into a contract with health providers in UAE to open their clinics in UAE. 3. Intertek had two projects, that require initial outlay of RO250,000. Board of Directors decided to accept both projects, as the company had sufficient funds to invest in both projects. 4. Marine Engineering has a budget of $50,000 for expansion projects. If available Projects A and B each cost $40,000 and Project C costs only $40,000. 5. Slice Traders, specialized in selling carbonated juices intends to start their manufacturing units, producing potato chips in Oman. 6. A leading bank in the region intends to add mutual fund and merchant banking services to its customers. I need answer of questions B only

A) Identify and classify the project into Replacement decision,Expansion decision, Diversification decision, Safety and/or environmental projects, Independent Projects, Mutually-exclusive project and Dependent Projects/Contingent Projects: B) Also mention the reasons for the classification. 1. Oman Insurance Company started their new branch in Salalah. 2. Badar Al Sama Hospital entered into a contract with health providers in UAE to open their clinics in UAE. 3. Intertek had two projects, that require initial outlay of RO250,000. Board of Directors decided to accept both projects, as the company had sufficient funds to invest in both projects. 4. Marine Engineering has a budget of $50,000 for expansion projects. If available Projects A and B each cost $40,000 and Project C costs only $40,000. 5. Slice Traders, specialized in selling carbonated juices intends to start their manufacturing units, producing potato chips in Oman. 6. A leading bank in the region intends to add mutual fund and merchant banking services to its customers. I need answer of questions B only

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter14: Multinational Capital Budgeting

Section: Chapter Questions

Problem 1ST

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Question

B) Also mention the reasons for the classification.

1. Oman Insurance Company started their new branch in Salalah.

2. Badar Al Sama Hospital entered into a contract with health providers in UAE to open their clinics in UAE.

3. Intertek had two projects, that require initial outlay of RO250,000. Board of Directors decided to accept both projects, as the company had sufficient funds to invest in both projects.

4. Marine Engineering has a budget of $50,000 for expansion projects. If available Projects A and B each cost $40,000 and Project C costs only $40,000.

5. Slice Traders, specialized in selling carbonated juices intends to start their manufacturing units, producing potato chips in Oman.

6. A leading bank in the region intends to add mutual fund and merchant banking services to its customers.

I need answer of questions B only

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