Salalah Methanol Co. has bought some new machinery at a cost of 1250000 OMR. The impact of the new machinery will be felt in the additional annual cash flows of 375000 OMR over the next five years. What is the payback period for this project? If their acceptance period is three years, will this project be accepted? Select one: O a. 3.84 years, no O b. 2.82 years, yes O c. 2.53 years, yes O d. 3.33 years, no O e. None of these

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...
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Salalah Methanol Co. has bought some new machinery at a
cost of 1250000 OMR. The impact of the new machinery will be
felt in the additional annual cash flows of 375000 OMR over the
next five years. What is the payback period for this project? If
their acceptance period is three years, will this project be
accepted?
Select one:
O a. 3.84 years, no
O b. 2.82 years, yes
O c. 2.53 years, yes
O d. 3.33 years, no
O e. None of these
Transcribed Image Text:Salalah Methanol Co. has bought some new machinery at a cost of 1250000 OMR. The impact of the new machinery will be felt in the additional annual cash flows of 375000 OMR over the next five years. What is the payback period for this project? If their acceptance period is three years, will this project be accepted? Select one: O a. 3.84 years, no O b. 2.82 years, yes O c. 2.53 years, yes O d. 3.33 years, no O e. None of these
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