5. What is meant by working capital? What is significance of working capital management? (1+2 marks) 6. The returns from a project are normally distributed with a mean of OMR 180,000 and a standard deviation of OMR 140,000. If the project loses more than OMR 30,000 the company will be made insolvent. What is the probability of insolvency? 7. A firm is considering investing in a project with the following cash flows: Year 1 2 3 4 5 Net Cash Flow( in 1,000 1,200 1,450 1,580 1,700 OMR) The initial investment is OMR 6,900. The firm has a required rate of return of 10 per cent. Calculate: (a) the payback period (1 mark) (b) the discounted payback period (2 marks)