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ABC Company is considering investing in a new project. The initial investment of this project is OMR 12,000. It will. The project has an expected

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ABC Company is considering investing in a new project. The initial investment of this project is OMR 12,000. It will. The project has an expected life of 4 years with OMR 3,000 scrap value. The machine is expected to generate a profit after tax and depreciation of OMR 5,000; OMR 4,000; OMR 5,000 and OMR 6,000 at the end of year 1, 2, 3 and 4 respectively. 1. What is the Net Present Value of the project at 9% discount rate? 2. Determine the payback period of the project. The demand for a commodity is 2,500 units a year, at a steady rate. The ordering cost is OMR 185 per order and the holding cost is OMR 25 per unit per year. Calculate EO

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