Analyze each of the aforementioned investment opportunities


Mr. Fadi, the finance manager at Nizwa University, approached you to advise him where to invest the extra O.R 1,000,000 that will be needed after 5 years from now to start phase three of construction. Mr. Fadi surveyed the market for potential investment opportunities and came up with the following. • 4% Time deposit compounded quarterly at Bank Muscat. • A portfolio in Muscat Stock Market with expected return of 6%; however the investment is expected to be liquidated after 5 years with a loss of 2%. • Sohar port is issuing 5-year bond, O.R 1,000 par value and 7% semiannual coupon payments. Market interest rate for similar asset is 6% Mr. Fadi aims to get the highest possible return from the investment. Instructions: Analyze each of the aforementioned investment opportunities and draft a two-paragraph report explaining the rational in where to invest the O.R 1,000,000.

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Financial Management: Analyze each of the aforementioned investment opportunities
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