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1. Al Hisabil Manufacturers LLC can make either of two investments at the beginning of 2020. The given two proposals have following forecast particulars: (6
1. Al Hisabil Manufacturers LLC can make either of two investments at the beginning of 2020. The given two proposals have following forecast particulars: (6 Marks) Details Cost of the Investment Proposal - A Proposal - B 200,000 280,000 Estimated Life 4 Years 5 Years Scrap Value Nil Nil Profit After Tax for OMR OMR 2020 5,000 Nil 2021 20,000 34,000 2022 35,000 34,000 2023 25,000 34,000 2024 34,000 Assuming cost of capital at 12% p.a., evaluate the best investment proposal using following methods: a) Net Present Value b) Internal Rate of Return Note: Presentation must have the summary of all the points written in the report. Question No 2: Greenways LLC is evaluating Project X, which requires an initial investment of RO 160,000. The expected net cash flows are RO 450,000 pa for 9 years at today's prices. However, these are expected to rise by 3.5% pa because of inflation. The firm's cost of capital is 14%. (Refer the present value table given at the last page) 4 Marks Find the NPV by: (a) Discounting money cash flows (b)Discounting real cash flows. Question:3 List down any two governmental projects which are running at present in Sultanate of Oman along with their scope, budget and time duration
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