1. Al Hisabil Manufacturers LLC can make either of two investments at the beginning of...
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1. Al Hisabil Manufacturers LLC can make either of two investments at the beginning of 2020. The given two proposals have following forecast particulars: ( 8 Marks) Details Proposal - A Proposal - B Cost of the Investment 200,000 280,000 Estimated Life 4 Years 5 Years Scrap Value Nil Nil Profit After Tax for OMR OMR 2020 5,000 Nil 2021 20,000 34,000 2022 35.000 34,000 2023 25,000 34,000 2024 34,000 Assuming cost of capital at 12% p.a., evaluate the best investment proposal using following methods: a) Payback Period b) Net Present Value c) Discounted Payback Period d) Internal Rate of Return Note: Presentation must have the summary of all the points written in the report
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