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5. Anta networks want to modernize their networking system. Proposals have been received from two major software companies. The first proposal cost OMR9million but will
5. Anta networks want to modernize their networking system. Proposals have been received from two major software companies. The first proposal cost OMR9million but will raise the firm's annual cash flows by OMR5million. The second proposal cost OMR8million and provides cash flow of OMR5.5million a year. Both projects have a life span of 4 years. Assuming that the cost of capital is 9%, which proposal may be recommended on the basis of Net Present Value criteria
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