Q7 - Maple plc is considering two mutually exclusive projects to accept, each with a five-year life. Project A requires an initial investment of OMR 2,300,000 and is forecast to generate annual cash flows of OMR 750,000 for next five years. Project B costs OMR 660,000 for equipment at the start. Cash inflows of OMR 200,000 per annum are anticipated for next five years. The company has a straight-line depreciation policy and a cost of capital of 15 per cent (relevant for projects of this risk class). Calculate: a). the net present value (NPV). b). Modified Internal Rate of Return c). Selection of the project based on NPV method