The Salalah Coffee Company is evaluating the within-plant distribution system for its new roasting, grinding, and packing plant. The finance manager could estimate the Earning before Depreciation and...

Extracted text: The Salalah Coffee Company is evaluating the within-plant distribution system for its new roasting, grinding, and packing plant. The finance manager could estimate the Earning before Depreciation and Tax and the project managers were given the task of first finding the Cash flow after Tax (CFAT) and then understand if the project could be accepted or rejected. The equipment will need an initial investment of OMR 41400. The useful life of the equipment is 6 years. After 6 years it will have no salvage value. The cost of capital is 8% Earning before Depreciation and Tax are as follows : - Earnings Before Depreciation and Tax (OMR) Year 5 Year 1 Year 2 Year 3 Year 4 Year 6 14000 14000 16200 18400 20600 26800 Depreciation is calculated on a straight line method and the tax rate is 25%. Evaluate the Project on the basis of NPV and choose the option below? O NPV is negative and the project can be rejected O NPV is 34450 and the project can be accepted O NPV is 27269 and the project can be accepted O NPV is 28269 and the project can be accepted