Question: (Page 1 start from here) Assignment Question: 1. Answer the follwing questions. Briefly introduce about the concept of Capital budgeting. Comapreand and Contrast 3 capital
(Page 1 start from here) Assignment Question: 1. Answer the follwing questions. Briefly introduce about the concept of Capital budgeting. Comapreand and Contrast 3 capital budgeting techniques in detail. A Company is considering two mutually exclusive projects. Each require an initial Investment of OMR 120,000. The after tax cash inflows associated with each project is as follows: Project A Cash flows Project B Cash flows (Initial Investment) Year 120,000 120,000 1 50,000 50.000 2 40,000 25.000 3 20,000 25,000 4 40,000 80,000 5 15.000 10,000 (a) Calculate the payback period for project A &B. (b) Which project should the company invest in and why? The cash flows (CFS) of project A which you are considering to invest are given below. If the cost of capital of the project is 10%, would you accept the project based on Net Present Value method? Show the calculation to support your decision. -30,000 16,000 16,000 16,000 16,000 . Give a conclusion about capital budgeting, Note: Your answer expecting as given formats coverpage and detailed expanation given table of contents headings Last date of submission: December 6,2020)
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