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Calculate the following investment appraisal criteria for THREE optional projects (Selection is from your own choice): 1. i. Accounting Rate of Return ii. Payback period iii. NPV (Select a cost of capital at your own choice*) iv. IRR ((Select a cost of capital at your own choice*) *NB: Refer the attached PV table.

Calculate the following investment appraisal criteria for THREE optional projects (Selection is from your own choice): 1. i. Accounting Rate of Return ii. Payback period iii. NPV (Select a cost of capital at your own choice*) iv. IRR ((Select a cost of capital at your own choice*) *NB: Refer the attached PV table.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Governorate Optional Initial Years: Values in OMR Project Investment 2022 2023 2024 2025 2026 2027 Ad Land 30000 7000 15000 14000 22000 Nil 5000 development Ad Dhahirah Ceramic products Dakhiliyah 24000 8000 5000 10000 4000 12000 10000 Al Batinah Fish 54000 6000 9000 12000 11000 10000 12000 North Processing Al Batinah Clay and pots 18000 6000 5000 7000 9000 8000 6000 South Al Buraymi Desert 5000 20000 Nil 50000 12000 22000 10000 camping Rock Garden Al Wusta 100000 20000 25000 18000 26000 22000 Nil Ash Ship Building 84000 16000 14000 12000 40000 30000 35000 Sharqiyah North Ash Turf racing 14000 15000 20000 42000 8000 7000 6000 Sharqiyah track South Dhofar Hotel chain 150000 26000 25000 20000 35000 29000 50000 Oil refinery 120000 22000 30000 50000 24000 20000 Muscat 40000 Musandam Date farming 48000 20000 25000 14000 60000 9000 8000 Required : Calculate the following investment appraisal criteria for THREE optional projects (Selection is from your own choice): 1. i. Accounting Rate of Return ii. Payback period iii. NPV (Select a cost of capital at your own choice*) iv. IRR (Select a cost of capital at your own choice*) *NB: Refer the attached PV table.
Transcribed Image Text:Governorate Optional Initial Years: Values in OMR Project Investment 2022 2023 2024 2025 2026 2027 Ad Land 30000 7000 15000 14000 22000 Nil 5000 development Ad Dhahirah Ceramic products Dakhiliyah 24000 8000 5000 10000 4000 12000 10000 Al Batinah Fish 54000 6000 9000 12000 11000 10000 12000 North Processing Al Batinah Clay and pots 18000 6000 5000 7000 9000 8000 6000 South Al Buraymi Desert 5000 20000 Nil 50000 12000 22000 10000 camping Rock Garden Al Wusta 100000 20000 25000 18000 26000 22000 Nil Ash Ship Building 84000 16000 14000 12000 40000 30000 35000 Sharqiyah North Ash Turf racing 14000 15000 20000 42000 8000 7000 6000 Sharqiyah track South Dhofar Hotel chain 150000 26000 25000 20000 35000 29000 50000 Oil refinery 120000 22000 30000 50000 24000 20000 Muscat 40000 Musandam Date farming 48000 20000 25000 14000 60000 9000 8000 Required : Calculate the following investment appraisal criteria for THREE optional projects (Selection is from your own choice): 1. i. Accounting Rate of Return ii. Payback period iii. NPV (Select a cost of capital at your own choice*) iv. IRR (Select a cost of capital at your own choice*) *NB: Refer the attached PV table.
Present Value of $1 Table 1 Factor = (1+ i)" Rate (i) 1% 2% 3% 5% 8% 10% 12% 15% 20% 1 0.990 0.980 0.971 0.952 0.926 0.909 0.893 0.870 0.833 2 0.980 0.961 0.943 0.907 0.857 0.826 0.797 0.756 0.694 3 0.971 0.942 0.915 0.864 0.794 0.751 0.712 0.658 0.579 4 0.961 0.924 0.888 0.823 0.735 0.683 0.636 0.572 0.482 0.952 0.906 0.863 0.784 0.681 0.621 0.567 0.497 0.402 0.942 0.888 0.837 0.746 0.630 0.564 0.507 0.432 0.335 7 0.933 0.871 0.813 0.711 0.583 0.513 0.452 0.376 0.279 8 0.924 0.853 0.789 0.677 0.540 0.467 0.404 0.327 0.233 0.914 0.837 0.766 0.645 0.500 0.424 0.361 0.284 0.194 10 11 12 0.888 0.905 0.820 0.744 0.614 0.463 0.386 0.322 0.247 0.162 0.896 0.804 0.722 0.585 0.429 0.350 0.287 0.215 0.135 0.788 0.701 0.557 0.397 0.319 0.257 0.187 0.112 13 0.879 0.773 0.681 0.530 0.368 0.290 0.229 0.163 0.093 14 15 0.861 16 17 18 19 20 0.861 0.758 0.661 0.505 0.340 0.263 0.205 0.141 0.078 0.743 0.642 0.481 0.315 0.239 0.183 0.123 0.065 0.853 0.728 0.623 0.458 0.292 0.218 0.163 0.107 0.054 0.844 0.714 0.605 0.436 0.270 0.198 0.146 0.093 0.045 0.836 0.700 0.587 0.416 0.250 0.180 0.130 0.081 0.038 0.828 0.686 0.570 0.396 0.232 0.164 0.116 0.070 0.031 0.820 0.673 0.554 0.377 0.215 0.149 0.104 0.061 0.026 Period (n)
Transcribed Image Text:Present Value of $1 Table 1 Factor = (1+ i)" Rate (i) 1% 2% 3% 5% 8% 10% 12% 15% 20% 1 0.990 0.980 0.971 0.952 0.926 0.909 0.893 0.870 0.833 2 0.980 0.961 0.943 0.907 0.857 0.826 0.797 0.756 0.694 3 0.971 0.942 0.915 0.864 0.794 0.751 0.712 0.658 0.579 4 0.961 0.924 0.888 0.823 0.735 0.683 0.636 0.572 0.482 0.952 0.906 0.863 0.784 0.681 0.621 0.567 0.497 0.402 0.942 0.888 0.837 0.746 0.630 0.564 0.507 0.432 0.335 7 0.933 0.871 0.813 0.711 0.583 0.513 0.452 0.376 0.279 8 0.924 0.853 0.789 0.677 0.540 0.467 0.404 0.327 0.233 0.914 0.837 0.766 0.645 0.500 0.424 0.361 0.284 0.194 10 11 12 0.888 0.905 0.820 0.744 0.614 0.463 0.386 0.322 0.247 0.162 0.896 0.804 0.722 0.585 0.429 0.350 0.287 0.215 0.135 0.788 0.701 0.557 0.397 0.319 0.257 0.187 0.112 13 0.879 0.773 0.681 0.530 0.368 0.290 0.229 0.163 0.093 14 15 0.861 16 17 18 19 20 0.861 0.758 0.661 0.505 0.340 0.263 0.205 0.141 0.078 0.743 0.642 0.481 0.315 0.239 0.183 0.123 0.065 0.853 0.728 0.623 0.458 0.292 0.218 0.163 0.107 0.054 0.844 0.714 0.605 0.436 0.270 0.198 0.146 0.093 0.045 0.836 0.700 0.587 0.416 0.250 0.180 0.130 0.081 0.038 0.828 0.686 0.570 0.396 0.232 0.164 0.116 0.070 0.031 0.820 0.673 0.554 0.377 0.215 0.149 0.104 0.061 0.026 Period (n)
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