In 2021, PURE LIFE company decided to volunteer water coolers Project for outdoor yard of Al Haram Al Makki . Its space is around 193,000 m2 and it requires 170 water coolers machines. Overall cost is 47,600 SR .Eight years of service the machines can last and without appreciable salvage value .Moreover , the maintenance warranty is not under our company. Each half of the day, we will be filling up the coolers with 480 bottles of water and that would cost 120 SR for each water cooler. Taxes charge will be 15% . No manpower provided by the company. Electricity costs 85,000 per year.Recovery period: 7-year MACRS

Develop the project cash flow over the service period of the machines and determine whether the investment is a wise , based on 15% . with MARR 6%

calculate the following:

1- the net present worth

2- i*

3- RIC

Cash Flow Statement 0 2 S year Income statement Revenues Expenses Depreciation Water cost Electricity cost Taxable income Income taxes Net income Cash flow statment Operating activeles Net income Depreciation Investment activies Water Coolers Salavage value Gains tax Net cash flow 6,802.04 11.657.24 8,325.24 5,945,24 1,800,000 1.800,000 1.800.000 1.800.000 85,000 85,000 85,000 85,000 -1.891,802.04.1,896,657.24-1.893.325.24-1,890,945.24 -340,524,367-341,398,303-340,798.543 -340,370.143 -1.551.277.67 -1.555,258.93-1.552.526,69-1.550,575.09 4,250.68 4.245.92 4,250.68 2,122.96 1.800,000 1,800,000 1.800,000 1,800,000 85.000 85,000 85.000 85,000 -1.889,250,68 1,889.245.92 -1,889,250,68-1,887,122.9 -340,065.122-340,064.266 -340,065,122 -339,682133 1,549,185,558 -1,549,181,654 -1,549,185,58 1,547,440,8 -1,551.277.67-1,555,258.93-1,552,526.69-1.550,575.09 6,802,04 11,657.24 8,325 24 5,945,24 1,549,185.558 -1,549,181,654 - 1.549,185 56-1,547,440.8. 4.250.68 4,245.92 4,250,68 2,122.96 -47,600 -47,600 -1,558,079.71-1,566,916,17-1,560,851.93-1,556,520,33 -1,553,436.238 -1,553,427.574 -1,553,436.21-1,549,563.78 Cash Flow Statement 0 2 S year Income statement Revenues Expenses Depreciation Water cost Electricity cost Taxable income Income taxes Net income Cash flow statment Operating activeles Net income Depreciation Investment activies Water Coolers Salavage value Gains tax Net cash flow 6,802.04 11.657.24 8,325.24 5,945,24 1,800,000 1.800,000 1.800.000 1.800.000 85,000 85,000 85,000 85,000 -1.891,802.04.1,896,657.24-1.893.325.24-1,890,945.24 -340,524,367-341,398,303-340,798.543 -340,370.143 -1.551.277.67 -1.555,258.93-1.552.526,69-1.550,575.09 4,250.68 4.245.92 4,250.68 2,122.96 1.800,000 1,800,000 1.800,000 1,800,000 85.000 85,000 85.000 85,000 -1.889,250,68 1,889.245.92 -1,889,250,68-1,887,122.9 -340,065.122-340,064.266 -340,065,122 -339,682133 1,549,185,558 -1,549,181,654 -1,549,185,58 1,547,440,8 -1,551.277.67-1,555,258.93-1,552,526.69-1.550,575.09 6,802,04 11,657.24 8,325 24 5,945,24 1,549,185.558 -1,549,181,654 - 1.549,185 56-1,547,440.8. 4.250.68 4,245.92 4,250,68 2,122.96 -47,600 -47,600 -1,558,079.71-1,566,916,17-1,560,851.93-1,556,520,33 -1,553,436.238 -1,553,427.574 -1,553,436.21-1,549,563.78