Question: 2. Shams company is considering two projects. Each requires an initial investment of OMR 100,000. The company cost of capital is 14%. The cash inflows

2. Shams company is considering two projects. Each requires an initial investment of OMR 100,000. The company cost of capital is 14%. The cash inflows associated with each project are as follows: Cash inflows Year Project A Project B 30,000 60,000 2 25,000 50,000 3 30,000 20,000 4 40,000 10,000 5 20,000 20,000 a. Calculate the NPV for each project. (2 marks) b. Which project you would recommend to the management. Explain why. (1 marks) 3. Write a short note about one of the current trends and issues in finance. (2 marks)
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