ABC Company is considering two investments both of which cost OMR 20,000. The cash flows are as follows:

Year	Project A cash inflows (OMR)	Project B cash inflows (OMR)
1	12,000	10,000
2	8,000	6,000
3	6,000	16,000

1. Based on the payback method, which of the two projects should be chosen?

a-Project B which has a payback period of 2.0 years.

b-Project A which has a payback period of 2.0 years.

c-Project A which has a payback period of 2 and 3 months.

d-Project B which has a payback period of 2 years and 3 months.

2. Based on the net present value method, assuming a cost of capital of 10%, which of the two projects should be chosen?

a-Project A which has a net present value of OMR 2,022

b-Project B which has a net present value of OMR6,062

c-Project A which has a net present value of OMR 22,022

d-Project B which has a net present value of OMR 26,062

3. Based on the discounted payback method, assuming a cost of capital of 10%, which of the two projects should be chosen?

a-Project A which has a payback period of 2.0 years.

b-Project B which has a payback period of 2.0 years.

c-Project A which has a payback period of 2 and 7 months.

d-Project B which has a payback period of 2 years and 6 months.