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Question 41 Not yet answered Marked out of 1 P Flag question From the following information, Initial investment OMR 20,000. Estimated life 2 years; Profit

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Question 41 Not yet answered Marked out of 1 P Flag question From the following information, Initial investment OMR 20,000. Estimated life 2 years; Profit after tax (PAT) OMR 10,000 per year at the end of year 1 and 2, respectively. If the hurdle rate is 10% and depreciation is calculated on straight-line basis, (PV factor @10% YI 0.9091, Y2 0.8264) then what is the net present value of cash flow of the project? O a. OMR 14,710. O b. OMR 18.182, O C. OMR 16,520, O d. OMR 34,720, Question 47 Not yet answered Marked out of 1 P Flag question From following information, Oman Limited is evaluating Project A, which requires an initial investment of OMR 40,000. The expected net cash flows are OMR 30,000 for two years at today's prices. However, these are expected to rise by 5% pa because of inflation. The firm's cost of capital is 12%. (PV @12% YI,.8929Y2, .7972 - PV @5% YI,.9524 Y2.9070 -PV @7% YI, .9346 Y2, .8734) Find the NPV, by discounting money cash flows. a. OMR 26,350 O b. OMR 54,490 O C. OMR 14,494 O d. OMR 28,780

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