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 Near 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 Near 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. Which technique refers to the rate at which the discount cash flows to zero? O a Return on investment method O b. Pay back method O c Accounting rate of return Od: None of the given options What is the future value of the loan if Ali will choose the offer of Old Bank using simple interest? O a 1.585.000 b. 585.000 OC 1.600.000 d. 1.300.000 What is the future value of the loan it All will choose the offer of Old Bank using compound interest? O a. 1.300,000 O 6.1762 57039 O 1,600,000 O d. 1585,000 Based on the loan application of Mr. Al it showed that the future value is a. Increasing as the period of loan increases O b. Decroming as the rate of interest is increasing c. Decreasing as period of foon increases O d. Did not change even if the period of loan increases