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3 ed out of Alayah Bakery has decided to sign a proposal to purchase new baking machinery. It contains the following data: 4-year useful life

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3 ed out of Alayah Bakery has decided to sign a proposal to purchase new baking machinery. It contains the following data: 4-year useful life Yearly maintenance costs are currently OMR 4,000 and will increase by OMR 1,600 if the machine is purchased. OMR 85,000 salvage value The company will save OMR 375,000 each year in labor costs if the new machine is purchased. The related tax rate is 12% The machine will depreciate by OMR 32,000 (years 1 and 2) and OMR 30,000 (year 3) and OMR 20,000 for all remaining years. question Purchase cost for the machine is OMR 500,000 Total incremental cashflow for Year 4 is: Select one: a. 334,032 b. None of the answers are correct O c. 332,192 O d. 332,432 e. 405,792 15:28 11/08/2020 AR Address Pav 5

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