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

Proposal - A Proposal - B

Cost of the Investment

200,000 280,000

Estimated Life

4 Years

Nil

5 Years

Nil

Scrap Value

OMR

OMR

Profit After Tax for

5,000

20,000

Nil

34.000

2020

2021

35,000

25,000

34,000

34,000

2022

2023

34,000

2024

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

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.

(5 Marks)