Project Investment 2022 5000 2023 2024 2025 2026 2027 Ad Land 30000 7000 15000 14000 22000 Nil Dakhiliyah Ad Dhahirah Ceramic development 24000 8000 5000 10000 4000 12000 10000 products Al Batinah Fish 54000 6000 9000 12000 11000 10000 12000 North Processing 5000 Al Batinah Clay and pots South Al Buraymi 18000 6000 7000 9000 8000 6000 Desert 50000 12000 5000 20000 22000 10000 Nil camping Rock Garden 20000 25000 18000 26000 22000 Al Wusta 100000 Nil Ash Ship Building 84000 16000 14000 12000 40000 30000 35000 Sharqiyah North Ash Turf racing 42000 8000 7000 6000 14000 15000 20000 Sharqiyah South track Dhofar Hotel chain 150000 26000 25000 20000 50000 35000 29000 Muscat Oil refinery 120000 22000 30000 50000 40000 24000 20000 Musandam Date farming 48000 20000 25000 14000 9000 60000 8000 Required : Calculate the following investment appraisal criteria for THREE optional projects (Selection is from your own choice): 1. i. Accounting Rate of Return ii. Payback period iii. NPV (Select a cost of capital at your own choice*) iv. IRR ((Select a cost of capital at your own choice*) *NB: Refer the attached PV table.
Project Investment 2022 5000 2023 2024 2025 2026 2027 Ad Land 30000 7000 15000 14000 22000 Nil Dakhiliyah Ad Dhahirah Ceramic development 24000 8000 5000 10000 4000 12000 10000 products Al Batinah Fish 54000 6000 9000 12000 11000 10000 12000 North Processing 5000 Al Batinah Clay and pots South Al Buraymi 18000 6000 7000 9000 8000 6000 Desert 50000 12000 5000 20000 22000 10000 Nil camping Rock Garden 20000 25000 18000 26000 22000 Al Wusta 100000 Nil Ash Ship Building 84000 16000 14000 12000 40000 30000 35000 Sharqiyah North Ash Turf racing 42000 8000 7000 6000 14000 15000 20000 Sharqiyah South track Dhofar Hotel chain 150000 26000 25000 20000 50000 35000 29000 Muscat Oil refinery 120000 22000 30000 50000 40000 24000 20000 Musandam Date farming 48000 20000 25000 14000 9000 60000 8000 Required : Calculate the following investment appraisal criteria for THREE optional projects (Selection is from your own choice): 1. i. Accounting Rate of Return ii. Payback period iii. NPV (Select a cost of capital at your own choice*) iv. IRR ((Select a cost of capital at your own choice*) *NB: Refer the attached PV table.
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
Related questions
Question
Transcribed Image Text:Present Value of $1 Table
1
Factor =
(1+ i)"
Rate (i)
1%
2%
3%
5%
8%
10%
12%
15%
20%
1
0.990 0.980 0.971
0.952 0.926
0.909 0.893 0.870 0.833
2
0.980
0.961
0.943
0.907 0.857
0.826
0.797 0.756
0.694
3
0.971
0.942
0.915
0.864
0.794
0.751
0.712
0.658
0.579
4
0.961
0.924 0.888
0.823
0.735
0.683
0.636
0.572 0.482
0.952
0.906 0.863
0.784
0.681
0.621
0.567
0.497 0.402
0.942
0.888
0.837
0.746
0.630
0.564
0.507
0.432 0.335
7
0.933
0.871
0.813
0.711
0.583
0.513
0.452
0.376 0.279
8
0.924
0.853
0.789
0.677
0.540
0.467
0.404
0.327
0.233
0.914
0.837
0.766
0.645
0.500
0.424
0.361
0.284 0.194
10
11
12 0.888
0.905
0.820
0.744
0.614 0.463
0.386
0.322
0.247 0.162
0.896
0.804
0.722
0.585 0.429
0.350
0.287
0.215
0.135
0.788
0.701
0.557
0.397
0.319 0.257
0.187 0.112
13
0.879
0.773
0.681
0.530
0.368
0.290
0.229
0.163 0.093
14
15 0.861
16
17
18
19
20
0.861
0.758
0.661
0.505
0.340
0.263
0.205
0.141 0.078
0.743
0.642
0.481
0.315
0.239
0.183
0.123 0.065
0.853
0.728
0.623
0.458 0.292
0.218
0.163 0.107 0.054
0.844
0.714
0.605
0.436
0.270
0.198
0.146 0.093 0.045
0.836
0.700
0.587
0.416 0.250
0.180
0.130
0.081
0.038
0.828
0.686
0.570
0.396
0.232
0.164
0.116
0.070
0.031
0.820
0.673
0.554
0.377
0.215
0.149
0.104
0.061
0.026
Period (n)
Transcribed Image Text:Project
Investment
2022
2023
2024
2025
2026
2027
Ad
Land
15000
14000 22000
Nil
30000
5000
7000
Dakhiliyah
development
Ad Dhahirah Ceramic
products
Al Batinah Fish
Processing
Al Batinah Clay and pots
4000 12000 10000
24000
8000
5000 10000
9000 12000
11000 10000 12000
54000
6000
North
18000
6000
5000
7000
9000
8000
6000
South
Al Buraymi
50000 12000
5000 20000
22000 10000
Desert
Nil
camping
Al Wusta
Rock Garden
100000 20000 25000 18000
26000 22000
Nil
Ash
Ship Building
84000
16000
14000
12000
40000
30000 35000
Sharqiyah
North
Ash
Turf racing
8000
7000
6000 14000 15000 20000
42000
Sharqiyah
South
track
Dhofar
Hotel chain
150000 26000 25000 20000 50000 35000 29000
Oil refinery
120000 22000 30000 50000
Muscat
40000
24000
20000
Musandam
Date farming
48000
20000
25000
14000
9000
60000
8000
Required :
Calculate the following investment appraisal criteria for THREE optional projects
(Selection is from your own choice):
1.
i. Accounting Rate of Return
ii. Payback period
iii. NPV (Select a cost of capital at your own choice*)
iv. IRR ((Select a cost of capital at your own choice*)
*NB: Refer the attached PV table.
2. Comment on each criterion and take the final decision with justifications.
(Word limit: 200-300)
Uce a cuitable format lintrod uction calculation
mmon ts and concl
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