XYZ Company is considering the purchase of a new machinery which will result in a capital outlay of RO25,000. The machinery is useful for five years. The expected salvage value at the end of its useful life is RO4,000. 

It is expected that the machinery will fetch an additional income (Cash flow before tax) of RO5,000 (Year 1), RO7,500 (Year 2), RO10,000 (Year 3), RO5,000 (Year 4) and RO5,000 (Year 5) during the five years. The tax rate is 10%. 

Assume that the company is expecting a minimum rate of return of 12%, Will you recommend the purchase of machinery? (Use NPV Method)