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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

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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)

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