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don't use programs or specialized calculator Makkah Hyper market is a famous company for its various retail outlets of grocery items in Oman. The company
don't use programs or specialized calculator
Makkah Hyper market is a famous company for its various retail outlets of grocery items in Oman. The company is planning to open a new outlet in Sohar. The initials costs including land, construction, installation and finishing is expected to be OMR 500,000. The information pertaining to expected annual revenues is given below: Year 1 ending : OMR 140000 Year 2 ending : OMR 170000 Year 3 ending : OMR 180000 Year 4 ending : OMR 210000 The expected costs for maintenance, staff salaries and miscellaneous expenses are OMR 110,000 each year. Applicable annual compounding interest rate is 8%. a) Based on the information given, draw a cash flow diagram. (01 Mark) b) Compute the equivalent net present worth of cash flows. (2.5 Marks) c) Compute the equivalent net future worth of cash flows at the end of 4 years. (2.5 MarksStep by Step Solution
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