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MHD is considering an expansion project that requires an initial outlay of OMR120,000. The project is expected to generate the following net income over the

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MHD is considering an expansion project that requires an initial outlay of OMR120,000. The project is expected to generate the following net income over the years. Year Net Income /Cash inflows (OMR) 1 25,000 2 30,000 3 25,000 30,000 4 5 30,000 The non-cash expenses[ Depreciation expense) for each year are estimated at OMR10,000. If the required rate of return is 12%, Required: a. Calculate Accounting Rate of Return, Net Present Value, and Profitability Index b. Should this project be accepted based on your calculations [ 2+2+2 = 6 Marks)

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