The initial investment of a project is OMR 30,000. The profit after interest and tax (Cash inflows) for Year 1 is OMR 20,000 and for Year 2 is OMR 26,000. The scrap value is OMR 3,000 and the discount rate is 10%. (The present value of OMR 1 at 10% discount factor for year 1 is 0.909 and Year 2 is 0.826). In this case, the Net present Value (NPV) of the project is: a. OMR 9,656 b. None of these c. OMR 16,000 d. OMR 12,134

The initial investment of a project is OMR 30,000. The profit after interest and tax (Cash inflows) for Year 1 is OMR 20,000 and for Year 2 is OMR 26,000. The scrap value is OMR 3,000 and the discount rate is 10%. (The present value of OMR 1 at 10% discount factor for year 1 is 0.909 and Year 2 is 0.826). In this case, the Net present Value (NPV) of the project is: a. OMR 9,656 b. None of these c. OMR 16,000 d. OMR 12,134

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 16EA: Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in...

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