Question 1: Falcon Company manufactures the camera system of a DRONE sembly. Its manufacturing embly part is located at the middle east and stated in operation in the yew 2010. The company and aghty percent of a prediction to the American and European drone compare the least three compton producing the same line of product for done by in China, South Korea da The CEO or Chief Operating Offer of Falcon company looking forward on the company get to cope with their competition in the market Selling proe, he tenia cous labor costs, and distributions are just some of the lost the CEO are kon of considering to possible fracal analysis. He decat e pranon manager purchasing manager and France manager for an urgent meeting to discuss it mater. The mering will be caning on the Aorter edice company's cost of production, and other prostred and Overtendos. The company ested monthly chand monthly sale moes on this person Table 01. Al costs and monthly basis ecce e comparties To statul este for dette te blowing ration Smarts Udon me from 0 to 10.000 unisament, de blowing commune pretraphical presentation and explorer Abrech A as BA profesine yach Decapodomoro come to report contributor mange andre probly without having rokofing the market share Total 28 Table 1 Uhr OR home TOWY Total Be Direct re OW erly An 201400 50 120 14 Our OM VIR COM OM 111 10 OUR OUR 122 Avenge In 20 Vat narest Expense Orton EBON 20 W Singed Com 60% od do OUR 58.00 OUR OUR 5000 MOTO Question 3: The Muscat Electric Company ventures to a new project in the eastern part of the capital city which is a 200-kilometer, 300 kV transmission lines. The company has to choose between an Overhead Cable Transmission System and Underground Cable Transmission System. Table 03 shows the initial investment for each type, the expected revenues during its lifetime which includes the cost savings incurred by underground transmission system over the overhead transmission system. The company has estimated a salvage value for each type of transmission to be 5% of the initial (1) Discounted payback period: investment. As a company cost of capital is 8% per year. Using the following techniques for capital investment appraisal, perform the following: 18 marks] m) Net present value NPV: 17 marks] (iii) Internal rate of retur IRR. [7 marks] (iv) Determine which of the alternative is acceptable to the company based on the above results [3 marks] [Total 25 marks) Table Q3: Revenue & Expenses in Million OMR Overhead Underground Items Cable Transmission Cable Transmission System System Initial Investment 9,852 (million OMR) 12,232 845 1255 Annual Revenue + cost savings (million OMR) increases by 2% per increases by 2% per year year First 10 years First 10 years Annual Operating & 300 184 Maintenance O&M Succeeding years (million Succeeding years Cost 3% increase per 1.5% increase per OMR) year year Annual taxes 10% of (Annual 10% of (Annual (mision OMR) Revenue + cost Revenue + cost savings) savings) Life expectancy 50 40 years Question 1: Falcon Company manufactures the camera system of a DRONE sembly. Its manufacturing embly part is located at the middle east and stated in operation in the yew 2010. The company and aghty percent of a prediction to the American and European drone compare the least three compton producing the same line of product for done by in China, South Korea da The CEO or Chief Operating Offer of Falcon company looking forward on the company get to cope with their competition in the market Selling proe, he tenia cous labor costs, and distributions are just some of the lost the CEO are kon of considering to possible fracal analysis. He decat e pranon manager purchasing manager and France manager for an urgent meeting to discuss it mater. The mering will be caning on the Aorter edice company's cost of production, and other prostred and Overtendos. The company ested monthly chand monthly sale moes on this person Table 01. Al costs and monthly basis ecce e comparties To statul este for dette te blowing ration Smarts Udon me from 0 to 10.000 unisament, de blowing commune pretraphical presentation and explorer Abrech A as BA profesine yach Decapodomoro come to report contributor mange andre probly without having rokofing the market share Total 28 Table 1 Uhr OR home TOWY Total Be Direct re OW erly An 201400 50 120 14 Our OM VIR COM OM 111 10 OUR OUR 122 Avenge In 20 Vat narest Expense Orton EBON 20 W Singed Com 60% od do OUR 58.00 OUR OUR 5000 MOTO Question 3: The Muscat Electric Company ventures to a new project in the eastern part of the capital city which is a 200-kilometer, 300 kV transmission lines. The company has to choose between an Overhead Cable Transmission System and Underground Cable Transmission System. Table 03 shows the initial investment for each type, the expected revenues during its lifetime which includes the cost savings incurred by underground transmission system over the overhead transmission system. The company has estimated a salvage value for each type of transmission to be 5% of the initial (1) Discounted payback period: investment. As a company cost of capital is 8% per year. Using the following techniques for capital investment appraisal, perform the following: 18 marks] m) Net present value NPV: 17 marks] (iii) Internal rate of retur IRR. [7 marks] (iv) Determine which of the alternative is acceptable to the company based on the above results [3 marks] [Total 25 marks) Table Q3: Revenue & Expenses in Million OMR Overhead Underground Items Cable Transmission Cable Transmission System System Initial Investment 9,852 (million OMR) 12,232 845 1255 Annual Revenue + cost savings (million OMR) increases by 2% per increases by 2% per year year First 10 years First 10 years Annual Operating & 300 184 Maintenance O&M Succeeding years (million Succeeding years Cost 3% increase per 1.5% increase per OMR) year year Annual taxes 10% of (Annual 10% of (Annual (mision OMR) Revenue + cost Revenue + cost savings) savings) Life expectancy 50 40 years