Capital Budgeting Practice Problems 1. Consider the project with the following expected cash flows: Year Cash flow 0 - OMR 200,000 (Cash outflows) 1 +50,000 2 +50,000 3 +200,000 a. If the discount rate is 0%, what is the project's net present value? b. If the discount rate is 5%, what is the project's net present value? 2. Consider a project with the expected cash flows: Year Cash flow 0 -OMR50,000 (Cash outflows) +50,000 1 2 +100,000 3 -100,000 a. If the discount rate is 5%, what is this project's net present value? 2. Consider a project with the expected cash flows: Year Cash flow 0 -OMR50,000 (Cash outflows) 1 +50,000 2 +100,000 3 -100,000 a. If the discount rate is 5%, what is this project's net present value