Mr. Ali is the CEO of Fiditzi 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 Year 1 200,000 400,000 150,000 480,000 Year 2 400,000 300,000 200,000 570,000 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. 48 Under the internal rate of return technique a decision is acceptable when:- d a. None of the given options Out of b. Present value of compounded cash flows is not greater than present values of outflows c. Present value of compounded cash flows is greater than present values of outflows d. Present values of compounded cash flows are equal to present values of outflows ed 49 out of n What is the payback period for project Shinas? a. 1.2 years b. None of the options. c. 1.9 years d. 3.8 years on 50 1 red d out of ion If Mr. Ali would choose New Bank, which is better for him a. Compound Interest is better for him since he will earn more. b. In simple interest, it will cost him less interest expense c. In compound interest, it will cost him less interest expense d. None of the given options