q6

1. In capital budgeting, should the following be ignored, added or subtracted from the purchase price of OMR 10,000 for a new machine when estimating initial cash outflow? What is the total initial outflow? C. a. OMR 2,000 for shipping the new machine to the company's facility. b. A cement foundation for the new machine will cost OMR 450. The monthly rent for the company's facility is OMR 750. d. The market value of the old machine is OMR 500 (the new machine will replace the old machine) e. Oil and electrical cables of OMR 325 will be required to operate the machine. f. Annual Depreciation will be OMR 2,500 per year. g. Training for the machine operator will cost OMR 210. h. The tax rate is 45%. 1. The salvage value of the Machine will be OMR 1,200 at the end of its useful life