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Mr. Ali is the CEO of Fiditxi Construction company and they have an allotted budget for project which is 1,000,000 R.O. Projects in different places

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Mr. Ali is the CEO of Fiditxi Construction company and they have an allotted budget for project which is 1,000,000 R.O. Projects in different places in Oman are projected to show the following cash inflows per year Year Project in Muscat Project in ibri Project in Salalah Project in Shinas Near 1 200,000 400.000 150,000 480,000 Near 2 400,000 300,000 200,000 $70,000 Year 3 500,000 600,000 100,000 600,000 Year 4 400,000 500,000 400,000 200,000 Year 5 300,000 300,000 500,000 100,000 Assume that Mr. Ali will apply loan to the bank to finance the 1,000,000 investment fund and New Bank offered a rate of 6% interest rate payable in 5 years, while Old Bank offered 6.5% payable in 9 years. Mr. Ali wanted to know net present value of cash inflows of the Project in Salalah at 6% discount rate with discount factors for five years are 0.943, 0.890, 0.839. 0.7921 and 0.7473 respectively a 93500 O b. None of the given options O c93650 O d. 93600 The time interval between purchasing raw materials and collecting on sales of finished goods is known as the a. Accounts receivable cycle O b. Operating cycle O c Accounts payable cycle Od. Inventory cycle Which of the following statements is NOT correct with regard to the business working capital? O a Efficient working capital management helps to meet short term liquidity and long term obligations O b. Net Working Capital is the excess of current assets over the current liability of the concern during a particular period c. It is the amount of funds necessary to cover the cost of operating of the business O d. Efficient working capital management leads to improve the operating performance of the business concern In response to market expectations, the average payment period has been increased from 45 days to 60 days. This would result in a. Increase in CCC b. Increase in Average Collection Period O Decrease in CCC d. Decrease in Debtors

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