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The Alpha Company has a proposal of purchasing automatic machine. The details of the proposal are: Cost of the machine OMR 320,000, estimated life 8

The Alpha Company has a proposal of purchasing automatic machine. The details of the proposal are: Cost of the machine OMR 320,000, estimated life 8 years, estimated sales 200,000, Raw material cost 70,000, labour cost 14,000 and variable overheads 12,000. In this case, the Return on Investment is:
a.
20%
b.
None of these
c.
32.5 %
d.
43%

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