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Spotty Ltd plans to purchase a machine costing OMR 18,000 to save labor costs. Labor savings would be OMR 10,000 in the first year and
Spotty Ltd plans to purchase a machine costing OMR 18,000 to save labor costs. Labor savings would be OMR 10,000 in the first year and in the second year will increase by 10%. The estimated average annual rate of inflation is 9% and the company's cost of capital is estimated at 11%. The machine has a two - year life with an estimated actual salvage value of OMR 5.000 at the end of year 2. Using the discounting money cash flows (nominal method), what is the NPV of the project.
Please I wont answer with step
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