tion Petroleum Development Oman (PDO), decided to start a capital project of extraction of crude oil in Dhofar region in 2022. The company has three alternatives to consider before starting the project. The project requires an initial investment of OMR 100,000 at the beginning of 2022. The estimated life of the project is 5 years. Assuming a discount rate of 10%, the estimated cash flows and the discount factors of the projects are as follows: Present Value of OMR 1 Year Project 1 Project II Project III @ 10% discount 2022 20,000 25,000 15,000 0.909 2023 30,000 40,000 35,000 0.826 2024 40,000 70,000 50,000 0.751 2025 50,000 80,000 65,000 0.683 2026 70,000 90,000 80,000 0.621 Analyse the capital projects and answer the following questions: Question 44 What is the payback period of Project II? Not yet answered Marked out of 1.00 P Flag question O a. 2.7 years O b. 3.2 years c. 2.5 years O d. 3 years Question 45 Not yet What is the present value of the cash flow from Project Ill in respect of the year 2026? answered Marked out of 1.00 P Flag question O a. 49,680 O b. 30,040 O c. 22,725 O d. 44,395 Question 46 Not yet It measures business profitability and it enables business to rank different projects accordingly, this scenario is applicable for: answered Marked out of 1.00 P Flag question O a. Net Present Value O b. Payback Period O c. All of the given options O d. Time Value of Money Al Tawat Mahn Question 48 Not yet What is the future value of OMR 500, 5-year loan with 3% annually using simple interest? answered Marked out of 1.00 a. 315 P Flag question O b.952 O c. 575 d. 905 Question 49 Which of the following statements is correct in respect to Payback method? Not yet answered Marked out of 1.00 P Flag question a. Payback method is a modern method of capital budgeting b. For uneven cash flows, its calculated by dividing initial Investment by annual cash flow O c. None of the options given O d. For even cash flows, payback period will be calculated by adding cash flows until equal to outlay Question 50 Which of the methods is not considering Time Value of Money? Not yet answered Marked out of 1.00 a. IRR b. Payback period c. Profitability index d. Net Present Value Flag