Solution-What is cash flow after tax for the first year

What is cash flow after tax for the first year

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Reference no: EM132927950

Question - Sama Company is considering a new project with an estimated cost of OMR 32,500 at time zero. The residual value at the end of its two years useful life is OMR 5,000. Sama Company required rate of return is 12%. Operating cash inflows, excluding depreciation, and before taxation, are OMR 27,500 and OMR 22,500 for year 1 and 2 respectively. The tax rate is 20%.

1. What is cash flow after tax for the first year?

2. Calculate the after - tax NPV of the project (to the nearest OMR).

Reference no: EM132927950

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What is cash flow after tax for the first year

Reference no: EM132927950

Reference no: EM132927950

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