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A company Wincare SAOG have four alternatives to purchase reactors, but due to financial reasons they can only purchase one reactors. All cash inflows after

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A company Wincare SAOG have four alternatives to purchase reactors, but due to financial reasons they can only purchase one reactors. All cash inflows after taxes (CF) and initial cost are given below in table and they are unequally spread throughout year, all reactors have same life span of 7 years. If company wants to recover all its investment within 4 years. Reactor A 70000 Reactor B 1240000 Initial Investment (OMR) Year 1 2 3 Reactor A Reactor B CashInflow(OMR) CashInflow(OME 24000 47200 24000 180000 24000 73500 24000 26700 24000 200000 24000 450000 24000 73000 4 5 6 7 Reactor B Reactor C Reactor D 540000 1240000 180000 Reactor B Reactor C Reactor D Cashinflow(OMR) Cashinflow(OMR) CashInflow(OMR) 47200 20000 204000 180000 17000 157000 73500 38000 250000 26700 76000 75000 200000 27000 25000 450000 13000 160000 73000 220000 0 Determine which alternative should the company choose on the basis of payback period? O Reactor D Reactor C O Reactor B Reactor A

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