subject
Business, 07.04.2021 20:10 moisealafleur

1. Oman Company is considering the investment on a project with initial investment of OMR 5,000,000. The project has a life of 4 years. Information relating to the future cash
flows of this project are as follows:
Fixed cost
Variable cost
Year
Selling price
Sales volume
(units)
per unit
per unit
450
15,000
260
750,000
1
475
2.
15,000
280
750,000
10,000
295
3
500
750,000
10,000
320
4
570
750,000
Oman company has a nominal cost of capital of 13%.
Required:
Measure the sensitivity of the project to changes in variables and give your
recommendations. (2 marks)​

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Answers: 1

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