Choose the correct answer:
shboard Q 11 Hifa project NPV is OMR 90000 and the initial investment is 100000. IF the discount rate 5%, what is present value (cash inflow) for this investment? Select one a OMR 190000 b. OMR 5000 COMR 90000 d. OMR 10000 Card Q 12 lulu Inc. is planning to invest in a project lulu Inc. requires an initial investment of OMR 50000 and the present value (cash inflow) for this investment is 60000 If the discount rate 8%, the net present value (NPV) for the project will be Select one a OMR 20000 b. OMR 15500 COMR 60000 d OMR 10000 hrd Q 13 If the Initial outlay for XYZ project is OMR 3500 and the expected cash flow for Year 1 is OMR 1500; Year 2 is OMR 1500 and for Year 3 is OMR 1000. The expected cash payback period will be: Select one a. 2.5 years 5 5 years c. 3.5 years o 3 years Q 14 Which of the following statements about NPV and IRR is least accurate? Select one: O a. For mutually exclusive projects you should use the IRR to rank and select projects, O b. For independent projects if the IRR is > the cost of capital accept the project. O c. all options are correct. O d. The NPV method assumes that all cash flows are reinvested at the cost of capital. Ne Q 15 Follow Us, Inc. is having a project with an initial outlay of OMR15,000, and cash inflows of OMR 2,000 in first year OMR7,000 in second year, and OMR15,000 in third year. The cost of capital is 11% What is the profitability index of the project? Select one O a 1.04 Kb. 197 0.123 Od 1.55 Not yet answered Marked out of 1.00 p Flag question Q 16 Which of the following statements about the internal rate of return (IRR) and net present value (NPV) is least accurate? Select one: O a. The discount rate that causes the project's NPV to be equal to zero is the project's IRR O b. For mutually exclusive projects, if the NPV rankings and the IRR rankings give conflicting signals, you should select the project with the higher IRR O c. all options are correct. d. The IRR is the discount rate that equates the present value of the cash inflows with the present value of the outflows. Q 17 AL-Suwaiq Inc. has various options for replacing an equipment. The present value of costs for option AL-Suwaiq is OMR 200,000. Option AL-Suwaiq has a useful life of 5 years; annual operating costs were discounted at 9%. What is the equivalent annual cost? Select one: a. OMR 51,419 b. OMR 70,312 c. OMR 21,596 d. OMR 47,035 Q 18 Which of the following statements about NPV and IRR is least accurate? Select one: a. For mutually exclusive projects you should use the IRR to rank and select projects. O b. For independent projects if the IRR is > the cost of capital accept the project. O c. all options are correct. O d. The Npla method assumes that all cash flows are reinvested at the cost of capital. ard Q 19 Palestine Inc. is considering two options, but does not have enough capital to undertake both, Project Y requires an investment of OMR 200,000 and has an NPV of OMR 10,000 Project Z requires an investment of OMR 180,000 and has an NPV of OMR 25000. If Palestine use the profitability index to decide, it should choose: Select one O a Y because it has a higher profitability index b. Y because it has a lower profitability index O c. Z because it has a lower profitability index d. Z because it has a higher profitability index Q 20 Id flower Inc is considering a project with Initial outlay = OMR 5,000 and Cash flows for Year 1 = OMR 5,000 Year 2 = OMR 3,000. Calculate the net present value of the project, If the appropriate discount rate is 15%, (Round your ANSWER to the nearest amount) Select one O a OMR 1616 b. OMR 2100 COMR 1820 d. OMR (3000)
