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please with formulas in steps not excel 1. The Arab Union Company...

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Finance

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1. The Arab Union Company is studying a new 5-year project. This project requires initial fixed assets of 4 million riyals. Fixed assets will be depreciated using the straight-line method to reach zero at the end of the four-year period, at which point these assets will be worthless. The annual sales of this project are also estimated at 2,000,000 units annually Selling the unit is 2 riyals, and the variable cost of the unit is 1 riyal, and the fixed cost without property is $100,000. If the tax rate is 30%, what is the operating cash flow for the project? And if the project requires an initial investment in net working capital of $500,000 and the market value of the fixed assets will be $400,000 at the end of the project. What is the net present value of the project if the discount rate is 8% and is it acceptable or not (5 degree)

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