Q9) Muscat Company is planning to start their new factory in Salalah. The company is considering to purchase one of the two manufacturing equipment's required for the factory. The life for both the Manufacturing equipment's is 5 years. Equipment A OMR 13000 and Equipment from B costs OMR.13000. The Discount rate/cost of capital is 4%. Required: Use NET PRESENT VALUE techniques to help company to decide which Equipment is better and justify why? Year Equipment from A Equipment from B Cash inflow 1 2500 3500 2 3500 3500 3 4500 4000 4 5500 4000 5 6500 4500

Q9) Muscat Company is planning to start their new factory in Salalah. The company is considering to purchase one of the two manufacturing equipment's required for the factory. The life for both the Manufacturing equipment's is 5 years. Equipment A OMR 13000 and Equipment from B costs OMR.13000. The Discount rate/cost of capital is 4%. Required: Use NET PRESENT VALUE techniques to help company to decide which Equipment is better and justify why? Year Equipment from A Equipment from B Cash inflow 1 2500 3500 2 3500 3500 3 4500 4000 4 5500 4000 5 6500 4500

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8MC: Grummet Company is acquiring a new wood lathe with a cash purchase price of $80,000. The Wood Master...

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