Question: plz solve 3. ABC Ltd is considering a project which will require the purchase of a machine for OMR 1,000,000 at time zero. This machine
3. ABC Ltd is considering a project which will require the purchase of a machine for OMR 1,000,000 at time zero. This machine will have a scrap value at the end of its four-year life: this will be equal to its written-down value. (25% declining balance writing-down allowance on the machine each year), Corporation tax, at a rate of 30% of taxable income, is payable. ABC Ltd's required rate of return is 12%. Operating cash flows, excluding depreciation, and before taxation, are forecast to be: Time (year) 3 500,000 400.000 200,000 Cash flows before 300,000 tax (OMR) Required: Calculate the after-tax NPV of the project
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