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. 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. 1350000 b. 1093650 c. None of the given options d. 1090000 Mr. Ali wanted to know net present value of cash inflows of the Project in Shinas Hit 6% discount rate with discount factors for five years are 0.943, 0.890, 0.839, 0.7921 and 0.7473 respectively a. 696400 b. 696440 c. None of the given options d. 696640 Based on the calculated payback period which statement is correct between project in Muscat and in Ibri? a. Muscat 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. The payback period is lower in Muscat so it should not be selected. d. Ibri has shorter payback period so it should be selected. Mr. Ali wanted to know which project is to be selected on the basis net present value of cash inflows in comparison to Ibri 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. Project in Shinas b. None of the given options c. Both project of bri and Shinas d. Project in Ibri What is the payback period for project Muscat? a. 4.5 years b. 2.8 years c. 2.3 years d. None of the options Which of the following is called as discounted cash flow technique? a. Payback period b. None of the given options c. Accounting rate of return d. Return on investment What is the future value of the loan if Ali will choose the offer of New Bank using simple interest? a. 1,585,000 b. 1,600,000 c. 1,300,000 d. 1,762,570.39 While calculating Accounting Rate of Return which one of the following decision is acceptable? a. Acceptable if Accounting Rate of Return is not greater than predetermined Rate b. Acceptable if Accounting Rate of Return is greater than predetermined Rae c. None of the given options d. Acceptable if average profits are greater than predetermined Rate The drawback of the precise calculation of discount rate is difficult in:- a. Accounting rate of return b. Return on investment method c. Payback method d. None of the given options Under the internal rate of return technique a decision is acceptable when:- a. Present values of compounded cash flows are equal to present values of outflows b. None of the given options c. Present value of compounded cash flows is greater than present values of outflows d. Present value of compounded cash flows is not greater than present values of outflows