n 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 41 out of Based on the calculated payback period which statement is correct between project in Salalah and in Ibri? a. Salalah project has longer payback period so it should not be selected b. The payback period is higher in Ibri, so it should be selected. c. Ibri has shorter payback period so it should be selected. d. The payback period is lower in Salalah, so it should not be selected. d 42 Out of Mr. Ali wanted to know which project is to be selected on the basis net present value of cash inflows in comparison to Muscat and Shinas at 6% discount rate with discount factors for five years are 0.943, 0.890, 0.839, 0.7921 and 0.7473 respectively a. None of the given options b. Both project of Muscat and Shinas c. Project in Shinas d. Project in Muscat on 43 ed Po d out of on Mr. Ali wanted to know the Total 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. None of the given options b. 1093650 c. 1350000 d. 1090000