The initial investment of a project is OMR 30,000. The profit after interest and tax (Cash inflows) for Year 1 is OMR 20,000 and for Year 2 is OMR 26,000. The scrap value is OMR 3,000 and the discount rate is 10%. (The present value of OMR 1 at 10% discount factor for year 1 is 0.909 and Year 2 is 0.826). In this case, the Net present Value (NPV) of the project is: a. OMR 9,656 b. None of these c. OMR 16,000 d. OMR 12,134
The initial investment of a project is OMR 30,000. The profit after interest and tax (Cash inflows) for Year 1 is OMR 20,000 and for Year 2 is OMR 26,000. The scrap value is OMR 3,000 and the discount rate is 10%. (The present value of OMR 1 at 10% discount factor for year 1 is 0.909 and Year 2 is 0.826). In this case, the Net present Value (NPV) of the project is: a. OMR 9,656 b. None of these c. OMR 16,000 d. OMR 12,134
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16EA: Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in...
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![The initial investment of a project is
OMR 30,000. The profit after interest
and tax (Cash inflows) for Year 1 is
OMR 20,000 and for Year 2 is OMR
26,000. The scrap value is OMR
3,000 and the discount rate is 10%.
(The present value of OMR 1 at 10%
discount factor for year 1 is 0.909
and Year 2 is 0.826). In this case, the
Net present Value (NPV) of the
project is:
a. OMR 9,656
b. None of these
c. OMR 16,000
d. OMR 12,134](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3136803a-4bb5-41b8-9857-b3620e4e2e9c%2F8e3d0052-4b47-4978-a041-9caec7c40f80%2Fqcrwdzr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The initial investment of a project is
OMR 30,000. The profit after interest
and tax (Cash inflows) for Year 1 is
OMR 20,000 and for Year 2 is OMR
26,000. The scrap value is OMR
3,000 and the discount rate is 10%.
(The present value of OMR 1 at 10%
discount factor for year 1 is 0.909
and Year 2 is 0.826). In this case, the
Net present Value (NPV) of the
project is:
a. OMR 9,656
b. None of these
c. OMR 16,000
d. OMR 12,134
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