q3

1. Burj Khalifah Company has decided to sign a proposal for a new clock tower project. It contains the following data: OMR 50,000 salvage value and a 5-year useful life Yearly repair costs are currently OMR 12,500 and will be lowered to OMR 10,000 when the construction of the new tower begins. The related tax rate is 15% The company's labor costs will be lowered by OMR 700,000 each year with the construction of the new tower. The tower will depreciate by OMR 95,000 (years 1, 2 and 3) and OMR 130,000 (remaining years). Purchase cost for the new tower and all of its materials is OMR 1,300,000. What are the incremental cash flows over the proposal's useful life