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Ismail is planning to install a new machine for his metal fabrication business in Muscat. The machine will cost OR24,000. He estimates that the
Ismail is planning to install a new machine for his metal fabrication business in Muscat. The machine will cost OR24,000. He estimates that the new machine will generate cash inflows shown in the following table, over its 5-year life. Years 1 2345 Cash Flows OMR 4,200 5,000 6,200 4,800 4,000 Should Ismail Purchase and install the new machinery if he expects a minimum annual rate of 12% on his investment and why?
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