Mohammed is the managing director of a company planning to invest in a new machine. The machine full-capacity park facility. Mohamed is trying to evaluate if company should invest in the new machine. The necessary space already exists. You are provided with the following information: Investment needed to purchase the AED 450,000 necessary machine useful life of the machine 3 years Salvage value zero Depreciation expense each year AED 150,000 You are also provided with the following information about the park. Number of units produced and sold per 1600 units month Selling price per unit AED 25 Salaries for staff AED 90,000 per year Other miscellaneous expenses AED 44,000 annually with an increase of AED 6,000 each year. For this question ignore taxes. Required: 1. Calculate the annual net operating income (9 marks) 2. Calculate the net annual cash flows for the project. (6 marks) For the toolbar, press ALT+F10 (PC) or ALTEN.F10 (Mac). BIVS Paragraph Arial 10pt V 11! E > A2 x x 69 a X x B ST T + v TT 92 23 BE