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Assessment Type: Case analysis Part B: 1. Assume you are a project analyst for a TANFEEDH project in the Sultanate of Oman and you have
Assessment Type: Case analysis Part B: 1. Assume you are a project analyst for a TANFEEDH project in the Sultanate of Oman and you have been asked to analyze the project that has a stream of future cash flows. Briefly explain any TWO (2) capital budgeting techniques you would use for your analysis and recommendation. [10 Marks] 2. Assume that there is a proposal to start new energy plant in Duqm. The project requires an investment of RO 160,000. The following are projected net annual cash inflows of the project. Year 2021 2022 2023 2024 2025 Net Cash Flow (RO) 30,000|| 32,000 32,000 40,000 34,000 Required: i. Calculate the Net Present Value of the project using an estimated/assumed expected rate of return. Show your workings. Make a recommendation to accept or reject the project. ii. [10 Marks] (Total: 100 Marks)
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