Question: Question # 3: Read the case carefully and answer the questions that follow The government of Oman has decided to construct a water Dam in

 Question \# 3: Read the case carefully and answer the questions

Question \# 3: Read the case carefully and answer the questions that follow The government of Oman has decided to construct a water Dam in HayA-Turath, Nizwa. The construction of the dam can be finished in 2 years and the expected life of the dam is estimated to be 5 years after its completion. The following is the cost and revenue schedule of the Requirements: (a) Calculate the net cash flow of the project. [2 marks] (b) If the social discounting rate is 6%, calculate the net present value (NPV) [2 marks] (c) Based on NPV calculation, will you accept the project? [1 mark]

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