A company is considering the purchase of a machinery. Two machines are available and each machine costing OMR 100,000. Each machine has expected life of 8 years. The cost of capital is 10%. Net cash flow during the expected life of the machinery is given below. Year Machine A Machine B 1 35,000 28,000 2 32,000 14,000 3 29,000 24,000 4 20,000 28,000 5 18,000 22,000 Note: The following are the present value factors @ 10% p.a. Year 1 2 3 4 5 Present value of 10% 0.909 0.826 0.751 0.683 0.621 (Q1) What is the Net present value of Machinery A? (Q2) What is the Net present Value of Machinery B? (Q3) What is the investment decision Under Net present value method