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7. A firm is considering investing in a project with the following cash flows: Year 1 2 34 5 Net Cash Flow( in OMR) |

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7. A firm is considering investing in a project with the following cash flows: Year 1 2 34 5 Net Cash Flow( in OMR) | 1,000 1,200 1,450 1,580 | 1,700 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)

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