Question 1:2.5*4=10 MarksSalalah Methanol company management is considering three competinginvestment ProjectsOption1: Starting a unit in Sohar,Option 2: Starting a unit in Musandam andOption 3: Starting a unit in MuscatThe intial investment for all the projects are 15000 and the cost of capital is5.05%ITTYearSoharMusandamMuscat111002160322532604360310038004600510042503547545460630069007000Use the information below and help the management in choosing the mostdesirable Project usinga. Payback periodb. Discounted paybackc. Net Present valued. Profitability Index.You have to suggest to the management which project to choose and why

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Salalah Methanol company management is considering three competing investment Projects Option1: Starting a unit in Sohar, Option 2: Starting a unit in Musandam and Option 3: Starting a unit in Muscat The intial investment for all the projects are 15000 and the cost of capital is 5.05% Year Sohar Musandam Muscat 3225 4250 1 1100 2160 3100 3260 4360 3 3800 5475 4600 5100 5460 6300 6900 7000 Use the information below and help the management in choosing the most desirable Project using a. Payback period b. Discounted payback c. Net Present value

Salalah Methanol company management is considering three competing investment Projects Option1: Starting a unit in Sohar, Option 2: Starting a unit in Musandam and Option 3: Starting a unit in Muscat The intial investment for all the projects are 15000 and the cost of capital is 5.05% Year Sohar Musandam Muscat 3225 4250 1 1100 2160 3100 3260 4360 3 3800 5475 4600 5100 5460 6300 6900 7000 Use the information below and help the management in choosing the most desirable Project using a. Payback period b. Discounted payback c. Net Present value

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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