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Question 1 (5 marks): Assume you are the finance manager of Almanior Company, and the company is comidering investing in one of the three projects.

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Question 1 (5 marks): Assume you are the finance manager of Almanior Company, and the company is comidering investing in one of the three projects. The life for both the Projects X. M and Project Vis 5 years. Project X costs OMR 20500, Project M costs OMR, 20500 and Project costs OMR 20500 The discount rate/cost of capital is 415% Required: Use the following techniques to help company to decide which Machine is better and justly why? Puyback period bl Discount payback period Net Present Value d) Present value index.Profitability index a) Year Project M Project Project 7865 1 3740 2752 2 4567 7609 9676 4620 4508 4 7292 8905 7836 9900 9904 1237

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