On 31 December 2013, the fair value of the asset less costs to sell was OMR 50,000 and the expected future cash flows were OMR 10,000 per annum for the next five years. The current cost of capital is 10% and a five-year annuity of OMR 1 per annum at 10% would have a present value of OMR 3-79. What is the present value of future cash flow of the asset? O a. OMR 45,000. O b. OMR 50,000. O C. OMR 37,900. O d. OMR 100,000.

On 31 December 2013, the fair value of the asset less costs to sell was OMR 50,000 and the expected future cash flows were OMR 10,000 per annum for the next five years. The current cost of capital is 10% and a five-year annuity of OMR 1 per annum at 10% would have a present value of OMR 3-79. What is the present value of future cash flow of the asset? O a. OMR 45,000. O b. OMR 50,000. O C. OMR 37,900. O d. OMR 100,000.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 11EA: How much would you invest today in order to receive $30,000 in each of the following (for further...

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On 31 December 2013, the fair value of the asset less costs to sell was OMR 50,000 and the expected fu for the next five years. The current cost of capital is 10% and a five-year annuity of OMR 1 per annum at 3-79. What is the present value of future cash flow of the asset? O a. OMR 45,000. O b. OMR 50,000. O c. OMR 37,900.
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