with an investment of OMR 100,000. She has provided the following information Styles about two possible locations to start the supermarket. Her family had advised to accept the project which recovers the funds within 3 years Particulars Supermarket at Maabela 100,000 OMR Supermarket at Al Ansab 100,000 OMR Initial Investment Cost of capital 10% 12% 40,000 50,000 40,000 Evaluate the above offers using the investment evaluation techniques mentioned below without using Excel and mentioning the steps.: All calculations steps are to Year 1 60,000 40,000 20,000 Year 2 Year 3 be provided a- Pay-back period b- Discounted Pay-back period C- Internal Rate of Return (IRR) d- Modified Internal Rate of Return (MIRR) e- Critically review the literature related to the above Investment appraisal techniques by highlighting THREE features about each technique used above. The discussion must be appropriately cited and referenced from relevant academic literature sources.

with an investment of OMR 100,000. She has provided the following information Styles about two possible locations to start the supermarket. Her family had advised to accept the project which recovers the funds within 3 years Particulars Supermarket at Maabela 100,000 OMR Supermarket at Al Ansab 100,000 OMR Initial Investment Cost of capital 10% 12% 40,000 50,000 40,000 Evaluate the above offers using the investment evaluation techniques mentioned below without using Excel and mentioning the steps.: All calculations steps are to Year 1 60,000 40,000 20,000 Year 2 Year 3 be provided a- Pay-back period b- Discounted Pay-back period C- Internal Rate of Return (IRR) d- Modified Internal Rate of Return (MIRR) e- Critically review the literature related to the above Investment appraisal techniques by highlighting THREE features about each technique used above. The discussion must be appropriately cited and referenced from relevant academic literature sources.

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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You currently work at Happy home Construction company The government offered the company 4 projects to undertake in building houses Management is trying to select the best investment from among these alternative independent projects. Each alternative involves an initial outlay of $160,000 and a 10% cost of capital. Management requires that all project investments should be recovered in 4 years. Their cash flows are as follows: Year Kinstown St Christina St Thomp St Bess 1 60,000 40,000 41,000 0 2 50,000 60,000 41,000 60,000 3 40,000 0 41,000 0 4 30,000 40,000 41,000 56,000 5 20,000 20,000 41,000 50,000 6 8,000 60,000 0 80,000 3a. Distinguish between Capital Expenditure and Revenue Expenditure citing,THREE examples of each. b.Explain the time value of money and the role of cost of capital in appraising investments. PLEASE DO QUESTION 3 A-B
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