Question: From following information, Sun Limited is evaluating Project W, which requires an initial investment of OMR 50,000. The expected net cash flows are OMR 35,000

From following information, Sun Limited is evaluating Project W, which requires an initial investment of OMR 50,000. The expected net cash flows are OMR 35,000 for two years at today's prices. However, these are expected to rise by 6 % pa because of inflation. The firm's cost of capital is 12%. (PV @12% Yl, .8929Y2,.7972 - PV @5% YI,.9524 Y2,.9070 -PV @7% Y1..9346 Y2,8734) Find the NPV by, discounting real cash flows. a. OMR 17,320 b. OMR 15,079 c. OMR 19,350 d. OMR 15,200

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