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Question 19 Not yet answered Marked out of 1 P Flag question XYZ Company is considering the purchase of a new machinery which will result

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Question 19 Not yet answered Marked out of 1 P Flag question XYZ Company is considering the purchase of a new machinery which will result in a capital outlay of OMR 50,000. The machinery is useful for two years. It is expected that the machinery will fetch an additional income of OMR 30,000 (Year 1), OMR 40,000 (Year 2) (cash flow after depreciation). The tax rate is 10%. Assume that the company is expecting a minimum rate of return of 12%, (Use NPV Method) (PV @12% YI, .8929 Y2, .7972), what is the net present value of machinery? a. OMR 6,750 b. OMR 2,808 OC. OMR 8,630 O d. OMR 7,000

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