A project generates same amount of revenue annually for 5 years, then its value is OMR, If the net present value for the project is OMR 150000 and the present value of total expenses is OMR 125000. Assume interest rate 10% p.a Select one: O a. 40263 O b. 72544 O C. 25000 O d. 275000

A project generates same amount of revenue annually for 5 years, then its value is OMR, If the net present value for the project is OMR 150000 and the present value of total expenses is OMR 125000. Assume interest rate 10% p.a Select one: O a. 40263 O b. 72544 O C. 25000 O d. 275000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

A project generates same amount of revenue annually
for 5 years, then its value is
OMR, If the net
present value for the project is OMR 150000 and the
present value of total expenses is OMR 125000.
Assume interest rate 10% p.a
Select one:
O a. 40263
O b. 72544
O c. 25000
O d. 275000

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