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12. A firm is considering investing in a project with the following cash flows :( 3 marks) Year Cash flow (OMR) 1 2 3 4

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12. A firm is considering investing in a project with the following cash flows :( 3 marks) Year Cash flow (OMR) 1 2 3 4 5 6 7 8 1500 2000 2500 2000 2000 1000 1000 500 The initial investment is OMR 9250. The firm has a required rate of return of 8 per cent. Calculate the net present value of the project

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