Assignment questions Question No. 1: (05, 06) [10 Marks] What is the meaning of the time value of money? And why the financial manager uses it to decide on the capital budgeting evaluation? Question No. 2: (06) [2 x 5 = 10 Marks] Project A and B have a cost of OMR (700). Each project generates cash flows as seen in the below table, According to the payback period method and in the line of risk and liquidity preference, answer the following:- (Hint:- Your answer must be not random.) a) which is the project you will select? b) Justfy your decision. End-of-Year Cash Flow Project 1 2 3 A 500 300 100 B 400 450 100 Question No. 2: Mini Case (06) [10 Marks] Oman oil company is trying to evaluate a new project with the following cash flows. If the project requires a (12%) cost of capital, how much the project net worth (NPV). Year Cash Flow Project 0 2 A (45000) 78000 (14000)