19 A choice is to be made between the two proposals which require equal investment of OMR 50000 and are expected to generate net cash flow as made : Year PV factor @10% project A project B I .909 25000 10000 15000 12000 .751 10000 18000 .683 25000 . 20 .826 30 . 4th nil . 5 .621 12000 8000 6 .564 6000 4000 Cost of capital of the company is 10 % which proposal should be selected using NPV method. Suggest the best project