Salalah Methanol company management is considering three competing investment Projects Option1: Starting a unit in Sohar, Option 2: Starting a unit in Musandam and Option 3: Starting a unit in Muscat. The initialinvestment for all the projects are 11000 and the cost of capital is 4.05% Year Sohar Musandam Muscat 1 1100 2160 3225 2 3100 3260 4250 3 3800 4360 5475 4 4600 5460 6300 5 5100 6900 7000 Use the information below and help the management in choosing the most desirable Project using a. Payback period b. Discounted payback c. Net Present value d. Profitability Index. You have to suggest to the management which project to choose a
Salalah Methanol company management is considering three competing investment Projects Option1: Starting a unit in Sohar, Option 2: Starting a unit in Musandam and Option 3: Starting a unit in Muscat. The initialinvestment for all the projects are 11000 and the cost of capital is 4.05% Year Sohar Musandam Muscat 1 1100 2160 3225 2 3100 3260 4250 3 3800 4360 5475 4 4600 5460 6300 5 5100 6900 7000 Use the information below and help the management in choosing the most desirable Project using a. Payback period b. Discounted payback c. Net Present value d. Profitability Index. You have to suggest to the management which project to choose a
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Salalah Methanol company management is considering three competing investment Projects
Option1: Starting a unit in Sohar, Option 2: Starting a unit in Musandam and
Option 3: Starting a unit in Muscat. The initialinvestment for all the projects are 11000 and the cost of capital is 4.05%
|
Year |
Sohar |
Musandam |
Muscat |
|
1 |
1100 |
2160 |
3225 |
|
2 |
3100 |
3260 |
4250 |
|
3 |
3800 |
4360 |
5475 |
|
4 |
4600 |
5460 |
6300 |
|
5 |
5100 |
6900 |
7000 |
Use the information below and help the management in choosing the most desirable Project using
a. Payback period
b. Discounted payback
c. Net Present value
d. Profitability Index.
You have to suggest to the management which project to choose and why
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