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A. A new ammonia plant is to be constructed next to the current OQ site at an estimated fixed capital investment of 14000000 OMR. The
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A new ammonia plant is to be constructed next to the current OQ site at an estimated fixed capital investment of 14000000 OMR. The working capital will be 30 percent of the total investment, and depreciation is estimated to cost 15% annually, of the total investment. On operating the plant the half yearly profit is expected to be 3 million OMR. Calculate the return on investment and the minimum payout period.
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