Q1 Project H requires an initial investment of OMR100,000 and produces annual cash flows of OMR50,000, OMR40,000, and OMR30,000. Project T requires an initial investment of OMR100,000 and the produces annual cash flows of OMR30,000, OMR40,000, and OMR50,000. The projects are mutually exclusive Which project the company should accept based on the payback period information? Sweet one a Hand T will both be accepted Ob Neither projected will be accepted O Project will be accepted d Project T will be accepted Q2 0 flower Inc. is considering a project with Initial outlay = OMR 5,000 and Cash flows for Year 1 = OMR 5,000, Year 2 - OMR 3,000. Calculate the net present value of the project. If the appropriate discount rate is 15%. (Round your ANSWER to the nearest amount) Select one O a OMR 1616 O b. OMR 2100 . C OMR 1820 d. OMR (3000) Clean my choice Next page Flag question Q3 Muscat Company is considering a project with Initial outlay = OMR 750,000, Incremental after-tax cash flows from operations Years 1-6 - OMR 250,000 per year. Compute the NPV of this project if the company's discount rate is 12%. (Round your ANSWER to the nearest amount) Select one: a. OMR 500,000 b. OMR 277,852 c. OMR 191,337 d. OMR 22,000 Q4 Financial managers should always select the project that provides the highest net present value (NPV) whenever NPV and IRR methods conflict because maximizing? Select one: O a. all options are correct. O b. the shareholders rate of return is the goal of financial management. C. revenues are the goal of financial management. O d. shareholder wealth is the goal of financial management. Q5 Rustaq Inc. is planning to invest in a project. Rustaq requires an initial investment of OMR 110000 and the present value (cash inflow) for this investment is 145000. If the discount rate 5%, the profitability index (P) for the project will be Select one: O a. 0.76 O b. ZERO O c. 1.32 O d. 4.14 Q6 Central Mass Ambulance Service can purchase a new ambulance for OMR 200,000 that will provide an annual net cash flow of OMR 50,000 per year for five years. Calculate the NPV of the ambulance if the required rate of return is 9% (Round your ANSWER to the nearest OMR1.) Select one: O a OMR50,000 O b. OMR(5,061) O c. OMR5,517 d. OMR(5,517) 0 rd Q7 Which of the following is a correct equation to solve for the NPV of the project that has an initial outlay of OMR 50,000, followed by incremental cash inflows in the next 3 years of OMR15,000. OMR20,000, and OMR30,000? Assume a discount rate of 10% Select one O a NPV = - OMR50.000 + OMR15,000/(1.1).10 + OMR20,000[1.2) 10 + OMR30,000(1.3) 10 . b. NPV =- OMR50,000 + OMR15,000/(1.01).10+ OMR20,000/(1.02). 10 + OMR30,000/(1.03). 10 O c. NPV = - OMR50,000 + OMR15,000(1.10)1 + OMR20,000(1.10)2 + OMR30,000(1.10)3 O d. NPV = - OMR50,000 + OMR15,000/(1.10)1 + OMR20,000/(1-10)2 + OMR30,000/(1.10)3 Clear my choice Q8 Full Moon company net present value for project A is OMR1000, and the profitability index equal two. How much is the initial investment for project A? Select one: O a OMR 500 O b. OMR 2000 c. OMR 1000. O d. OMR 4000 09 Nice Life company net present value for project B is OMR2000, and the profitability index equal 1.5. How much is the present value for project B.? Select one: O a. OMR 6000 w O b. OMR 1333 O c. OMR 2000 O d. OMR 3000. Q10 RP Company is considering a project with Initial outlay = OMR 16,000 and the cash flows Year 1 = OMR 14,000; Year 2 = OMR 3,000 and Year 3 = OMR 9,000. Calculate the net present value of the project, If the appropriate discount rate is 15%? Select one: a. OMR (7466) b. OMR 3000 c. OMR 12534 d. OMR 4360