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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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