Question: Izki, Inc. is considering a project that has an initial after-tax outlay of OMR 1,286,500. The respective future cash inflows from its four-year project for
Izki, Inc. is considering a project that has an initial after-tax outlay of OMR 1,286,500. The respective future cash inflows from its four-year project for years 1 through 4 are: OMR 769,500, OMR 763,000, - OMR 405,500 and OMR 595,800. Izki uses the net present value method and has a discount rate of 15%. Will Izki accept the project? a. Izki accepts the project because the NPV is about OMR 33,595.80. b. Izki rejects the project because the NPV is about - OMR 156,716.13. c. Izki accepts the project because the NPV is about OMR 1,320,095.80. d. Izki accepts the project because the NPV is about OMR 550,595.80. e. Izki rejects the project because the NPV is about-OMR 115,061.64
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