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. d 44 out of Based on the calculated payback period which statement is correct between project in Muscat and in Salalah? a. Muscat project has longer payback period so it should not be selected b. The payback period is higher in Salalah, so it should be selected. c. Salalah has shorter payback period so it should be selected. d. The payback period is lower in Muscat so it should be selected. d 45 out of Under Accounting rate of return which one of the decision is acceptable? a. Accounting rate of return is equal to minimum rate established by the management b. None of the given options c. Accounting rate of return is less than the minimum rate established by the management d. Accounting Rate of return is higher than the minimum rate established by the management