Assume you are the finance manager of Almanor Company, and the company is considering investing in one of the three projects. The life for both the Projects X, M and Project Y is 5 years. Project X costs OMR. 20500,Project M costs OMR. 20500 and Project Y costs OMR.20500. The discount rate/cost of capital is 4.15%.

Required:Use the following techniques to help company to decide which Machine is better and justify why?

a)Payback period

b)Discount payback period

c)Net Present Value

d)Presentvalue index -Profitability index.

Year	Project X	Project M	Project Y
1	7865	3748	8752
2	4567	7609	8393
3	9676	4628	4508
4	7292	8905	7836
5	9900	9904	8287