A project which requires an investment of OMR 25,000, duration of the project is 2 years, average net cash inflows were OMR 15,00 and annual variable cost is OMR 10,000. Assuming a discount rate at 9%, evaluate the sensitivity of sales volume influencing NPV with above information. Select one: O A. 3.15% B. 5.26% O C. 7.88% D. 5.55%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Please help me
A project which requires an investment of OMR 25,000, duration of the project is 2 years, average net cash inflows were OMR 15,000
and annual variable cost is OMR 10,000.
Assuming a discount rate at 9%, evaluate the sensitivity of sales volume influencing NPV with above information.
Select one:
A. 3.15%
B. 5.26%
O C. 7.88%
O D. 5.55%
Transcribed Image Text:A project which requires an investment of OMR 25,000, duration of the project is 2 years, average net cash inflows were OMR 15,000 and annual variable cost is OMR 10,000. Assuming a discount rate at 9%, evaluate the sensitivity of sales volume influencing NPV with above information. Select one: A. 3.15% B. 5.26% O C. 7.88% O D. 5.55%
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education