Use the following information to answer questions 11-15: A firm evaluates a project with the following cash flows. The firm has a 2 year payback period criteria and a required return of 11 percent. Year 0 1 2 3 4 5 Cash flow (OMR) -24,000 17,000 12,000 9,000 -8,000 11,000 1-Whatis the net present value for the project?

Principles of Accounting Volume 2
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Chapter11: Capital Budgeting Decisions
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Problem 6EB: The management of Ryland International Is considering Investing in a new facility and the following...
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Use the following information to answer questions 11-15:
A firm evaluates a project with the following cash flows. The firm has a 2 year payback period criteria and a required return of 11 percent.
Year
0 1 2 3 4 5
Cash flow (OMR) -24,000 17,000 12,000 9,000 -8,000 11,000
1-Whatis the net present value for the project?
2-Whatis the payback period for the project?
3-what is the discounted payback period for the project?

4-What is the profitability index for the project?
5-Given your analysis, should the firm accept or reject the project?

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