(10 Marks) Al Omani, an SAOC company based in Muscat specializing in the manufacture and distribution of equipment for disabled people, and their major clients are ministry of health and various private hospitals in Oman. Currently the company is evaluating a new capital expenditure project. In a joint venture with a German based company, it has developed a remote controlled pushchair, one of the first of its kind on the market. It has been unable to obtain a patent for the invention, but the management is sure that it will capture the market for the first three years. However year 4 and 5 it expects to be faced with firm competition. The details are set out below. (1) The project has an immediate cost of RO.2,100,000, (2) Sales are expected to be RO.1,550,000 per annum for years 1 to 3, falling to RO.650,000 per annum for the two years after that. No further sales of the product are expected after the end of this five-year period. (3) Cost of sales is 40% of sales. (4) Distribution costs represent 10% of sales. (5) 20% of net profits are payable to the joint venture partner the year after the profits are earned. (6) The company's cost of capital is 5%. Required (a) Calculate the net present value (NPV) of the project at the company's required rate of return. And also comment and Conclude whether the project is financially viable. (4 Marks) (b) Calculate the project's internal rate of retum (IRR) to the nearest percent (4 Marks) (e) Calculate the project's simple payback period