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AL-sahwa Inc. is considering a project with the following cash flows: Initial outlay = OMR 24,000....

AL-sahwa Inc. is considering a project with the following cash flows: Initial outlay = OMR 24,000. Cash flows for Year 1 = 50% of the Initial outlay; Year 2 = 60% of the Initial outlay and Year 3 = 35% of the Initial outlay. Calculate the net present value of the project, If the appropriate discount rate is 16%. Select one:
a. OMR 4534
b. OMR 7466
c. OMR (7466)
d. OMR 2428

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Answer #1
Calculation of Net Present Value of the Project
Year Amount (OMR) PVF @ 16% Present Value (OMR)
0 -24,000 1.000 -24,000
1 12,000 0.862 10,345
2 14,400 0.743 10,702
3 8,400 0.641 5,382
Present Value of project as on today 2,428

Option "D" OMR 2428 is the correct answer

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