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. XYZ Company is considering purchasing new equipment costing SAR 2 5 0 , 0 0 0 . The company s management has estimated that

. XYZ Company is considering purchasing new equipment costing SAR 250,000. The companys management has estimated that the equipment will generate cash flows as follows (SAR):
Year Net Cash Flow PV @10%
190,0000.9091
275,0000.8264
385,0000.7513
475,0000.6830
The company's required rate of return is 10%. Calculate the net present value and give reasons on whether the project should be accepted or rejected.

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