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Indiana Inc. is appraising an investment project. And data given below: The initial investment is OMR 5,200,000 million. A scrap value of OMR 500,000 expected
Indiana Inc. is appraising an investment project. And data given below: The initial investment is OMR 5,200,000 million. A scrap value of OMR 500,000 expected life of four years Incremental overheads of OMR 300,000 while overhead inflation of 10% per year aftertax discount rate of 11% per year uncertainty about the future state of the economy. The following forecast of selling prices and their probabilities: State of Economy Weak probability 40% & unit selling price 30. State of Economy Weak probability 50% & unit selling price 50. State of Economy Weak probability 100% & unit selling price 50. Make proper steps wise solution and give proper final solution as per below questions. create tables after execute formula calculation write answers in tables! 1. Calculate the payback period? 2. Calculate Discounted payback period? 3. Calculate net present value execute with formula in step by step? 4. Calculate internal rate of return of the investment project? 5. comment on its financial acceptability? 6. Evaluate the possible source of risk and uncertainty in the context of the above investment
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