Fanoos Corporation is considering the following two competing investment proposals:

	Project A	Project B
Initial investment required	OMR 82,000	OMR 105,000
NPV	OMR 50,000	OMR 40,000

A-Calculate the profitability index for project A.

a-1.61

b-1.16

c-0.61

d-1.38

B-Calculate the profitability index for project B.

a-1.47

b-1.38

c-0.39

d-1.61

C-Using the project profitability index, which project Fanoos Corporation should select?

a-Project C

b-Project B

c-Project A

d-None of the project