1 3.Mizoon Company is considering machinery which will require the purchase of a machine for OMR 600,000 at time zero. The scrap value at the end of its useful life is RO 60,000. Corporation tax, at a rate of 10% of taxable income, is payable. Cash flows after tax (PAT) are forecast to be: Time (year) 2 3 Cash flows 300,000 300,000 350,000 200,000 However, these are expected to rise by 3.0% pa because of inflation. The firm's cost of capital is 13%. Evaluate and find the NPV by: (a)Discounting money cash flows. (b)Discounting real cash flows. (c) What is the meaning of cost of capital? If it is not available, which common figures you can get? Explain how effectives ofinflation on the profit? Year PVPV 109 PV 13% 1 09709 O.RS 2 0.9426 0.9151 0.9091 0.8264 0.7513 0.7831 0.6951 + D.XXX 0.6E 0.6753